BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
CreditAccess Grameen Ltd.'s journey from the status of a project under the T. Muniswamappa Trust, an non-government organisation in South Bangalore, in 1999, to the largest non-banking financial company-micro finance institution in India as of December 2021, with consolidated assets under management of Rs 146 billion and borrower base of ~3.7 million, reflects its agility and resilience across business cycles.
But its journey from ~Rs 150 billion to ~Rs 300 billion AUM over the next three years would be critical, given no historical precedence of any standalone NBFC-MFI delivering more than 20% AUM growth andmore than 4% return on asset on such scale.
However, we believe the harmonised MFI regulation would strengthen market position of NBFC-MFI players.
Taking cognisance of expanded addressable market for NBFC-MFIs, the directive to adopt risk-based pricing and CreditAccess Grameen's competitive loan pricing, healthy capital positioning, we believe the company would be the biggest beneficiary of revised MFI regulation.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
