CREDITACCESS GRAMEEN LIMITED — Updates, 24-01-2025: Press Release

CreditAccess Grameen Limited reported robust growth in its third-quarter results, with assets under management (AUM) increasing by 6.1% year-on-year to INR 24,810 crore. The borrower base expanded 2.4% to 48.05 lakh, and the branch network grew by 8.7% to 2,059 branches. Collection efficiency remains strong at 93.3% (excluding arrears).

For the nine months of FY25, total income rose 17.1% to INR 4,348.4 crore, while pre-provision operating profit increased by 17.3% to INR 2,004.4 crore. However, the company recorded an impairment of INR 751.9 crore, leading to a loss of INR 99.5 crore in Q3 due to early risk recognition and conservative provisioning. Despite this, the return on assets (ROA) stands at 2.3% with a return on equity (ROE) of 9.4% for 9M FY25.

Looking ahead, management expects 7-8% loan portfolio growth for FY25, targeting ROA of 2.3-2.4% and ROE of 9.5-10.0%. For FY26, preliminary projections suggest AUM growth of 18-20% supported by customer retention and increased retail finance contributions, with expected ROA reaching 4.2-4.5% and ROE of 17-19%. The outlook remains positive as the company navigates current challenges.