Net interest margin for Q3FY22 was 10.3%. Expanding branch and people cost was reflected in the 63% YoY growth in operating expenses. However, the cost-income ratio softened on a sequential basis to 38.4%. Despite higher operating expenses, the operating profit growth was noted at a strong 35% YoY, reflecting the strength in core earnings. The annualized RoE touched 14.1% while RoA crossed 4% level after a year to touch 4.2%. The company maintains its +15% RoE guidance for medium term.

Disbursals increased 2.7x YoY to touch Rs 906.4 crore while the AUM increased 42% YoY touching Rs 5769.3 crore. The AUM growth was balanced, driven by MSME, affordable housing, and construction finance segments. The company commenced co-lending arrangement with State Bank of India and Union Bank of India during December 2021 and expects to generate strong growth through both these channels in the next six months.

Outstanding borrowings increased 25% YoY to touch Rs 4169.4 crore. Borrowings were long term and well-diversified across 17 lending institutions. The cost of funds was 8.2%, lower 80bps YoY and unchanged QoQ. CGCL is well-funded and maintains a well-matched asset liability profile.

Gross Stage 3 ratio was 3%, up 95bps YoY but lower 27bps QoQ. The Gross Stage 3 assets increased marginally over Q2FY22 to Rs 172.4 crore.

Both CGCL and its housing finance subsidiary Capri Global Housing Finance (CGHFL) are well capitalized with overall capital adequacy ratio at 35.2% and 30% respectively as of Q3FY22.

Founder & managing director Rajesh Sharma announces CGCL's foray into gold loans, "Secured retail lending has been a focus area for Capri Global and the company is pleased to announce expansion of its retail offering by foraying into the gold loan business. Gold loans offer a vast growth potential for organized players.

Capri Global, with its expanding reach in Tier 2 and 3 markets in West and North India is well placed to tap into this potential. The company shall be targeting 1,500 branch locations and a gold loan book size of Rs 8,000 crore over the next five years.

CGCL's Q3FY22 results are once again a testimony to its capability in driving sustainable growth and delivering value to its stakeholders. New products further enhance our growth outlook and put us firmly on path to deliver an overall AUM CAGR of +22% and a RoE of +15% over the medium term."

CGCL is a diversified non-banking financial company (NBFC) with a presence primarily across two key verticals - MSME loans and home loans. Its focus on MSMEs, the growth drivers of the economy, cuts across restaurants, small manufacturing units, traders, private schools, and goes beyond.