Grameen Financial Services reports Rs 9.58 crore profit in 2012-13

Micro finance institution Grameen Financial Services (GFSPL) has reported net profit (provisional, unaudited) of Rs 9.58 crore in 2012-13 as against a loss of Rs 2.90 crore in the previous financial year. 

Earlier, investment information and credit rating agency ICRA had attributed GFSPL’s Rs 6.70 crore net profit for the period ended December 2012 to improvement in operational profitability to 2.9 per cent from 0.6 per cent operational loss in fiscal 2012.

The company's outstanding loans as on March 31, 2013 stood at Rs 523.90 crore, up 37 per cent from Rs 381.30 crore as on March 31, 2012. Income generating loans comprised about 91 per cent of total loans as on March 31, 2013. Its projected disbursements for FY2014 and FY2015 are Rs 820 crore and Rs 1,292 crore respectively.

The company’s Managing Director Suresh Krishna told Deccan Herald that the growth plans would necessitate fund-raising. “We plan to raise Rs 80 crore in FY2014 and Rs 105 crore in FY2015 by way of equity, apart from debt of Rs 500 crore in FY2014,” he said.

GFSPL raised Rs 53.20 crore in the third round of equity funding from Creation Investments, Incofin and MicroVentures about two months back. “The foreign investors' stake as of now is 70 per cent of the total equity of Rs 115 crore, while promoters hold about 26 per cent,” Krishna said.

The company has earlier raised equity in two rounds from Aavishkaar Goodwell, Micro Ventures and Incofin Investment Management between fiscal 2008 to 2010.
The six-year-old GFSPL, which started as a Trust in 1999, primarily caters to borrowers in Karnataka where it has 75 per cent of its approximately 3.47 lakh borrowers, with the rest in Maharashtra and Tamil Nadu.  Sixty per cent of its borrowers are from rural areas and all borrowers are women, Krishna said.

GFSPL said that repayment rate is at a comfortable 99.9 per cent. “We have written off only Rs 10 crore in the past 13 years,” Krishna said.

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