CREDITACCESS GRAMEEN LIMITED — Important, 08-04-2025: Updates

Positive business momentum is evident with a healthy loan portfolio growth across all regions, albeit partially offset by lower growth in Karnataka. The company has added over 2.5 lakh new borrowers in Q4 FY25, contributing to a group loan portfolio (GLP) of INR 25,948 Cr. Asset quality shows signs of stabilization, with PAR 0+ increasing slightly to 6.9%, while excluding Karnataka, it improved to 6.1%. Notably, the collection efficiency in Karnataka has risen from approximately 96.9% to nearly 99%, reflecting enhanced collection efforts and increased employee strength from 19,333 in December 2024 to 20,973 in March 2025. The decline in PAR accretion rates across other states indicates a positive trend, warranting close monitoring for potential growth opportunities. However, the elevated PAR in Karnataka remains a point of concern. Overall, this update reinforces a positive outlook for operational stability and growth trajectory.