CREDITACCESS GRAMEEN LIMITED — Important, 06-03-2025: Updates

Positive business momentum is evident as CreditAccess Grameen reports healthy loan portfolio growth across most regions, despite lower growth in Karnataka. The company added over 1.5 lakh new borrowers in January and February. Furthermore, asset quality is stabilizing, reflected in a declining PAR accretion rate across various states, even as Karnataka faced challenges with a temporary dip in collection efficiency, which has recently improved.

The gross loan portfolio increased from ₹24,810 Cr to ₹25,395 Cr, with Karnataka contributing ₹8,010 Cr and other states ₹17,384 Cr. Despite transient impacts from a newly implemented ordinance in Karnataka resulting in increased delinquencies, efforts to stabilize the situation are underway. Enhanced collection strategies, coupled with increased employee counts from 19,333 to 20,265, aim to drive long-term recovery in collections.

Investors should monitor the ongoing recovery trajectory and the long-term impacts of these operational changes, as conditions are expected to normalize in one to two months.