Earnings in line; higher credit costs offset by lower opex

Company
23 Jan 2024
5 Min read 
  • CreditAccess Grameen (CREDAG) reported a healthy operational performance in 3QFY24.
  •  NII jumped 49% YoY, with a stable NIM.
  •  Asset quality deteriorated due to floods in Tamil Nadu and higher PAR from non-Karnataka states.
  •  The company expects stable CoB and reiterated its FY24 AUM growth guidance of 25%.
  •  Despite a reduction in lending rates, NIM and return ratios are expected to remain unaffected.
  •  CREDAG is focused on new customer acquisitions and expanding its branch network.
  •  The company has a strong capital position and is well-positioned for future growth.
  •  Reiterate BUY rating with a revised TP of INR1,985.
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