CreditAccess Grameen Ltd. — Earnings Release 2021

Aug 1, 2020

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August 01, 2020

BSE Limited

Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001 Scrip code: 541770

National Stock Exchange of India Limited The Exchange Plaza Bandra Kurla Complex Bandra (East) Mumbai 400051 Scrip code: CREDITACC

Dear Sir/Madam,

– Subject: Press Release Q1 FY21 Results

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with regard to the financial results for the quarter ended June 30, 2020, please find enclosed the Company’s press release for your reference.

Thanking you,

Yours sincerely,

For CreditAccess Grameen Limited

MATADA JAYAKUMAR Digitally signed by MATADA JAYAKUMAR MAHADEV PRAKASH DN: c=IN, o=Personal, 2.5.4.20=5601ef0045b6f995faf1e871ddf9a7375dcf09e7aee8b07a4ba620626f05e7 6d, postalCode=560094, st=KARNATAKA, serialNumber=58ba9a6a625f4b456fa47a MAHADEV 39c94b06a4179ecd6f946eec23dc6ca971 3900c4d7, cn=MATADA JAYAKUMAR MAHADEV PRAKASH PRAKASH Date: 2020.08.01 18:09:24 +05'30'

M J Mahadev Prakash Head - Compliance, Legal & Company Secretary Membership No: A16350

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CreditAccess Grameen Limited First Quarter FY20-21 Results

Gross Loan Portfolio up 53.9% YoY to INR 11,724 crore Borrower Base up 56.4% YoY to 40.1 lakh borrowers PPOP up 56.2% YoY to INR 256 crore Consolidated PAT of INR 75 crore

Bengaluru, 1[st] August 2020: CreditAccess Grameen Limited ( NSE: CREDITACC, BSE: 541770, ‘CAGL’) , country’s leading microfinance institution, today announced its unaudited and limited reviewed financial performance for the first quarter of FY20-21.

Consolidated Highlights Q1 FY21:

• Gross loan portfolio grew by 53.9% YoY from INR 7,619 crore to INR 11,724 crore

• Borrowers grew by 56.4% YoY from 25.6 lakh to 40.1 lakh

• NII grew by 55.2% YoY from INR 246.9 crore to INR 383.2 crore

• PPOP grew by 56.2% YoY from INR 163.6 crore to INR 255.6 crore

• Total ECL provisions were INR 476.8 crore ( 4.21% of loan portfolio). This includes additional provisions of INR 152.5 crore during the quarter, on account of COVID-19 impact, apart from overlay built in for previous comparable risk events in its ECL methodology in FY21

• The total COVID-19 additional provisioning buffer was INR 245.6 crore ( 2.17% of loan portfolio)

• Hence, PBT declined by 32.2% YoY from INR 148.1 crore to INR 100.5 crore

• PAT declined by 22.1% YoY from INR 95.8 crore to INR 74.6 crore

• ROA of 2.2% and ROE of 10.3%

• Stable asset quality with GNPA of 1.62% and NNPA of 0.00%

• Robust liquidity position with INR 1,377.2 Cr cash / bank balance and liquid investments as on 30[th] June 2020, amounting to 10.7% of total assets, which further improved to Rs 1,636 Cr on 30[th] July 2020.

• Well capitalised with standalone CRAR of 23.7%

• A+ (Stable) Rating affirmed by CRISIL in July , despite difficult operating environment due to COVID19 pandemic

Improving Collections Trend

• On-time centre meetings with >98% customers ,

• Collection efficiency improved MoM basis despite increased intermittent lockdowns/local restrictions.

• CAGL recorded collection efficiency of 74% in June / 76% in July

• MMFL (Madura Micro Finance Ltd) recorded collection efficiency of 54% in June / 64% in July

• Majority of customers have resumed repayments in June / July

• CAGL: ~ 83% made full/partial payments in July

• MMFL: ~ 78% made full/partial payments in July

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Reduction in Moratorium Book

• With improving collections trend, loan book under moratorium declined in June and July o CAGL: Moratorium book down from 100% in April & May to 26% in June and 24% in July o MMFL: Moratorium book down from 99% in April to 90% in May, 46% in June and 36% in July

• • The company has built adequate provisioning cover against moratorium book o CAGL: Provisioning covers 16.4% (June) / 17.7% (July) of Moratorium Book o MMFL: Provisioning covers 6.7% (June) / 8.9% (July) of Moratorium Book

Key Metrics Q1 FY21:

Particulars	CAGL	MMFL
Gross Loan Portfolio(INR Cr)	9,680	2,044
Borrowers(Lakh)*	28.8	12.0
Branches	929	459
Loan Officers	7,505	1,966
Employees	10,576	3,637
* only 63,604 common borrowers
Particulars (INR Cr)	CAGL	MMFL
Net Interest Income(NII)	322.5	60.7
Pre-Provision OperatingProfit(PPOP)	224.5	35.0
Profit Before Tax(PBT)	85.5	18.9
Profit After Tax(PAT)	63.6	14.0

Key Ratios	CAGL	MMFL
Net Interest Margin(NIM)	12.6%	11.5%
Cost/Income Ratio	31.0%	43.0%
Opex/GLP Ratio	4.1%	5.1%
Gross NPA	1.63%	1.58%
Net NPA	0.00%	0.00%
Return on Assets(ROA)	2.2%	2.5%
Return on equity (ROE)	9.4%	13.7%

Commenting on the performance, Mr. Udaya Kumar Hebbar, Managing Director and CEO of CreditAccess Grameen, said, “We recorded strong business growth, with our standalone loan portfolio up 27.0% YoY to INR 9,680 crore and borrower base up 12.2% YoY to 28.8 lakh borrowers. This was further augmented by MMFL acquisition, leading to consolidated loan portfolio growth of 53.9% YoY to INR 11,724 crore and 56.4% YoY growth in our borrower base to 40.1 lakh.

Our focus during the first quarter was on stabilising field collections, maintaining continuous customer connect and mobilising sufficient liquidity. Despite several intermittent localised lockdowns / restrictions, we were able to improve our collection efficiency to 74% by June and 76% by July. Even in case of MMFL, there was significant improvement in collection efficiency from 54% in June to 64% in July. This was primarily driven by our highly motivated field force, who made dedicated efforts whilst taking all precautionary / social distancing measures. Our strong customer relationships, deep rural presence and majority of borrowers being engaged in essential activities, helped us to record relatively faster recovery in collections. Disbursements were resumed in the last

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week of June and gradually ramped up in July reaching cumulative disbursement of INR 573 Cr in June and July. Our standalone liquidity position remains strong with cash balance of INR 1,420 Cr as on 30[th] July, on the back of continued support from our lenders and improving collections from field.

Our credit rating was recently affirmed by CRISIL, who rated us A+ (stable outlook) amid current volatile environment caused by COVID-19 pandemic. This underscores our strong business model, robust balance sheet with adequate risk and capital buffers and leadership position in microfinance industry.”

About CreditAccess Grameen Limited

CreditAccess Grameen limited is a leading Indian microfinance institution headquartered in Bengaluru, focused on providing micro-loans to women customers predominantly in rural areas across India. The Company is now operating in 230 districts in the 13 states (Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa, Gujarat, Rajasthan, Uttar Pradesh, Bihar and Jharkhand) and one union territory (Puducherry) in India through 929 branches. The Company’s Promoter is CreditAccess Asia N.V., a multinational company specializing in MSE financing (micro and small enterprise financing), which is backed by institutional investors and has a micro-lending experience through its subsidiaries in four countries in Asia.

For more information, please contact:

Nilesh Dalvi

Vice President – Investor Relations CreditAccess Grameen Ltd nilesh.dalvi@grameenkoota.org

Sanchi Yadav PR Consultant Adfactors PR sanchi.yadav@adfactorspr.com