Branches & Apps Drive Business Growth at Creditaccess Grameen

Bangalore headquartered MFI takes the next step from data warehouse to analytics:

CreditAccess Grameen (CAG), the Bangalore headquartered microfinance institution, promoted by CreditAccess Asia, focuses on providing micro-loans to women customers, predominantly in non-urban areas in India. It had 573 branches as of Q1 201819, which increased to 670 at the end of the last FY. That was accompanied by a 31.4% growth in number of employees, rising to 8641. Udaya Kumar Hebbar, MD & CEO of the MFI, says there has been a consistent growth in infrastructure marked by 31.4% yoy growth in branches to 753 spread across 170 districts in 9 states and 1 union territory. The company continued deepen its presence in existing markets and expanded in new geographies by entering Jharkhand, Rajasthan and Gujarat. Today it has 6165 loan officers, which is a 32.4% growth in last 12 months.

STRONG RURAL FOCUS

The company’s gross loan portfolio has grown by 39.4% yoy to `76.19 billion in Q1 of the current FY. Disbursements, net interest and net profit have grown by 42.9% (`23.10 billion), 32.4% (`2.46billion) and 32.7% (`958 million) respectively. Says Udaya Kumar: “Growth in gross loan portfolio was mainly driven by 32.1% growth in number of borrowers to 256,000 yoy. We have been growing consistently and our continuous focus on rural geographies helped us to acquire new business. There has been strong focus on nonurban geographies with 82% borrowers. Customer centric business model, flexibility in products and process to our customers, strong rural focus and robust audit and risk management practices have been helping us in our growth.”

STRATEGY OF GEOGRAPHY