CREDITACCESS GRAMEEN LIMITED — PPTs, 24-01-2025: Investor Presentation

**Financial Highlights:**

For Q3 FY25, CreditAccess Grameen reported a Gross Loan Portfolio (GLP) of ₹24,810 Cr, reflecting a 6.1% year-over-year (YoY) growth. Net Interest Income (NII) reached ₹861 Cr, marking a 7.4% increase YoY, while Profit After Tax (PAT) was negative at ₹99.5 Cr, a steep decline compared to the previous period. The company maintained a healthy Net Interest Margin (NIM) of 12.5%. Collection efficiency stood strong at 93.3%, but the Gross Non-Performing Assets (GNPA) ratio rose to 3.99%.

**Strategic Initiatives and Growth Drivers:**

The company has focused on enhancing operational efficiency through technology, launching platforms like Grameen Maitri for employees and MAHI for customers, promoting a seamless customer experience. There's a strong emphasis on asset quality improvement with early risk recognition and conservative provisioning measures.

**Business Developments:**

During Q3 FY25, CreditAccess Grameen added 1.52 lakh new borrowers, with 42% being new-to-credit clients. Disbursements increased by 27.0% quarter-on-quarter (QoQ) to ₹5,085 Cr, signaling a positive momentum.

**Market Position and Competitive Advantage:**

The firm has strengthened its market position through a diverse product suite and effective customer engagement strategies, resulting in a robust borrower retention rate of 88%. The strategic district-based expansion offers a competitive edge through localized service and effective risk management.

**Investor Implications:**

The current performance reveals a mix of challenges and opportunities. While recent write-offs impacted profitability, the upward trajectory in borrower addition and improved disbursement rates suggest a potential turnaround. Watch closely as the company's focus on technology and asset quality continues to shape its growth trajectory, potentially leading to improved financial health in the coming quarters.