Details of the corporate bond:
- Name of the Issuer: CreditAccess Grameen Ltd
- Product: Senior Redeemable NCD (regulated by SEBI)
- Yield: up to 10.13% p.a.
- Tenure: 24/33/50/60 months
- Min Investment: Rs. 10,000
- Interest repayment: Monthly/Cumulative options
- Principal repayment: Monthly/Maturity options
- Rating: IND AA-
Key Highlights:
- CAGL’s credit rating was upgraded by both ICRA and India Ratings to AA-(Stable) in FY23, It is the highest rating for a standalone MFI in India
- Strong Growth: 22% increase in AUM, 24% increase in revenue and 57% increase in PAT in FY23
- Financial Resilience: 23.6% CAR, GNPA of 1.21%, NNPA of 0.42%
- The share price of CAGL has seen a growth of about 43.25% from a value INR 974.5 to INR 1,396.0 in a period of past 6 months.
- “Great Places To Work” Certified for 4th consecutive year and among India’s Top 25 Best Workspaces in BFSI 2023. Also, featured amongst the top 100 companies to work for in India.
- The Gross Loan Portfolio has seen a growth of 26.7% in reaching a value of INR 21,031 cr. The total income has grown by 29.37% from Q4 F22 to Q4FY23 to a value of 1,066 cr.
- Largest NBFC- MFI in India (as of Mar'22): Over INR 21,000 crore loan portfolio as of Mar '23.
Overview:
Credit Access Grameen is a Bengaluru headquartered microfinance institution whose lending products cater to income generation, education, medical, festival, home improvement, water and sanitation, and emergency needs of its customers. They have enhanced their capabilities beyond solving basic credit needs to cover a wide range of financial and non-financial products. This includes individual unsecured business loans, mortgage-backed business loans, two-wheeler loans, gold loans, affordable housing loans, wage loss insurance, life insurance, and AEPS enabled cash withdrawal facility which is a true testament to the microfinance model going beyond the traditional credit delivery mechanism.
The equity shares of CAGL are listed on the BSE and the NSE and the company has a market capitalization of ~INR 22,000 crore (As of Aug 22,2023).
Key Financials:
All figures in INR crore
|
Balance Sheet |
FY 23 |
FY 22 |
|
Cash & cash equivalents |
1436.4 |
1761.4 |
|
Loans – (Net of Impairment allowance) |
18939.8 |
14765.3 |
|
Loans – Securitized assets |
103.6 |
0.0 |
|
Investments |
454.5 |
0.5 |
|
Other financial & non-financial assets |
320.8 |
322.7 |
|
Non-financial assets |
375.7 |
375.7 |
|
Total Assets |
21,858.1 |
17,482.0 |
|
Debt Securities |
1672.3 |
1418.1 |
|
Borrowings (other than debt securities) |
14,463.2 |
11,424.9 |
|
Other Financial & non-financial Liabilities |
360.0 |
306.9 |
|
Total Equity |
5,107.0 |
4,166.9 |
|
Total Liabilities & Equity |
21,858.1 |
17,482.0 |
|
P&L Statement |
FY 23 |
FY 22 |
|
Net Interest Income |
2,234.0 |
1653.1 |
|
Total Net Income |
2337.9 |
1765.9 |
|
Pre-provisioning operating profit |
1506.2 |
1077.5 |
|
Impairment on Financial instruments |
401.0 |
596.7 |
|
Profit Before Tax |
1105.4 |
480.8 |
|
Tax Expense |
279.4 |
127.7 |
|
PAT |
826.1 |
353.1 |
|
Exposure of Districts (% of GLP) |
No. of Districts |
% of Total Districts |
|
<0.5% |
290 |
82% |
|
0.5% - 1.0% |
38 |
11% |
|
1% - 2% |
20 |
6% |
|
2% - 4% |
4 |
1% |
|
> 4% |
0 |
0% |
|
Total |
352 |
100% |
Institutional Investors:
The prominent institutional equity investors in CAGL include:
- Government Pension Fund Global
- ICICI Prudential Life Insurance
- Nippon Mutual Fund
- PGIM India Mutual Fund
- SBI Mutual Fund
- T Rowe Price
Disclaimer: The content of this blog should not be considered as financial or investment advice. Viewers may consult their financial advisor before any any investment. Above mentioned data are as per the published date.