Shares of CreditAccess Grameen witnessed an impressive surge of 9 percent on October 23, buoyed by robust second-quarter earnings and a positive revision in the fiscal year 2024 guidance. During the September quarter, the company experienced a substantial uptick in net profit, nearly doubling to Rs 347 crore, primarily fueled by heightened loan sales and resultant income. This remarkable performance was complemented by a striking 53 percent year-on-year surge in total income, driven by a substantial increase in net interest income (NII).
As of 11:00 am, CreditAccess Grameen Bank shares were being traded at ₹1,523.20 on the National Stock Exchange, reflecting an impressive surge of 9.59 percent from the previous closing. Year-to-date, the stock has demonstrated a remarkable rally of 68.44 percent, outperforming the benchmark Nifty 50.
The company’s strong capital position has positioned CreditAccess Grameen well to navigate potential disruptions in the future. Moreover, analysts believe that this robust foundation enables the company to capitalize on growth opportunities over the medium term.
During the quarter ending September 2023, CreditAccess Grameen experienced substantial expansion in its loan book, accompanied by a notable growth in its borrower base across 1,877 branches. Additionally, the company’s collection efficiency demonstrated a marked improvement. Encouraged by these robust figures in 2023, CreditAccess Grameen revised its fiscal year 2024 loan growth guidance to an impressive range of 24-25 percent, up from the previous estimate of 20 percent. Furthermore, the net interest margin (NIM) guidance was also revised upward, now ranging from 12.7 percent to 12.8 percent.
