Creditaccess Grameen Bank, the largest microfinance institution, on Friday reported a 151.5 per cent jump in its net income to Rs 348 crore for the June 2023 quarter on higher loan sales and lower provisioning.

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The overall loan book of the Bengaluru-based lender grew 39.7 per cent to Rs 21,814 crore from Rs 15,615 crore a year ago, the bank said in a statement and attributed the same to a 20 per cent increase (3.28 lakh new customers) in the borrower base and better collection efficiency, which rose to 98.7 per cent.

The total income increased 53.9 per cent to Rs 1,170.7 crore from Rs 760.5 crore, while the key net interest income rose 65.4 per cent to Rs 763.3 crore from Rs 461.5 crore.

Impairment cost declined 24.3 per cent to Rs 76.4 crore from Rs 100.9 crore during the quarter, while total ECL (expected credit losses) provisions stood at Rs 323.7 crore (1.59 per cent).

Gross NPAs declined by 221 bps to 0.89 per cent from 3.11 per cent and net NPAs plunged to 0.27 per cent from 1.15 per cent.

The lender wrote off loans worth Rs 100.5 crore.

Its liquidity stood at Rs 2,034.5 crore or 8.9 per cent of the total assets, while capital position stood at 24.4 per cent.

Net interest margin (NIM) jumped 195 bps to 13 per cent from 11.1 per cent, helping it improve the cost/income ratio by 893 bps to 30.8 from 39.7.

Udaya Kumar Hebbar, the managing director and chief executive, said the bank aims to soon surpass Rs 25,000 crore loan portfolio by the time of completing 25 years of operations.

"The next 4-5 years will see us doubling our loan portfolio to over Rs 50,000 crore as per our business plan by leveraging our leadership position in the microfinance industry," he added.

Creditaccess operates in 353 districts in 15 states with 1,826 branches