CreditAccess Grameen Limited- Q4FY20 Analysis

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According to the management, with the moratorium, reduction in any sort of discretionary expenses as well as most of the rural business activity starting 1st week of May 2020, the borrowers would be well placed to clear the dues.

Also, most of the rural activities came under essential ones. 

During the moratorium months of Apr-May, the company was still conducting the weekly center meetings and they did a survey on how many lenders would like to go for moratorium once the collection starts from June 1st. 

According to the survey, 70% of the existing customer will prefer to repay the accrued interest , 20% may take a few more weeks to start repayment of the accrued interest and the remaining 10% is likely to go for the moratorium offered by RBI.

The company collects payment on a weekly basis and the 1st 2-3 weeks of June will be for accrued interest collection and then normal EMIs will start running. The company is also offering top up loan of ₹10-15k to borrowers to restart their lives.

As of June 1st, 98% branches are open with ~90% staff.

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In the Covid scenario, the company is still conduction weekly center meeting with reduced strength(One fourth of the center size) and the representative of each group will collect the payment and pay at the center meeting on others behalf. The average collection amount per head per week is about ₹500.

Resilience is at the bottom of the pyramid as they have to fight on their own for their & their family’s survival and will have to bounce back on their feet soon.

The collection efficiency for Q4FY20 was at 98%.



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Shekhar Yadav
It was only during the third semester in Engineering that Shekhar overheard a Gujarati guy in his class discussing stocks. After a few discussions with him, he realized that this was what he wanted to do in his life.
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