CREDITACCESS GRAMEEN LIMITED — PPTs, 16-05-2025: Investor Presentation

1. Financial Highlights:

CreditAccess Grameen’s Gross Loan Portfolio stood at INR 25,948 Cr, down 2.9% YoY but up 4.6% QoQ (excluding accelerated write-offs). Disbursements fell 19.6% YoY but rose 27.3% QoQ. Net Interest Income grew 11.1% YoY to INR 3,623 Cr with stable NIMs around 12.9%. Pre-Provision Operating Profit increased 10.3% YoY to INR 2,638 Cr. Profit After Tax declined 63.2% YoY to INR 531 Cr due to elevated credit costs, including accelerated write-offs totaling INR 518 Cr. Asset quality showed GNPA at 4.76% and NNPA at 1.73% with provisioning at 5.07%. Capital adequacy remains strong at 25.4%, supported by comfortable liquidity.

2. Strategic Initiatives & Growth Drivers:

Focus remains on retail finance, which increased its share from 2.7% to 5.9%, targeting 14-18% GLP growth in FY26 driven by retail and controlled microfinance expansion. Investments in technology include digital loan processing, automated onboarding, and enhanced data analytics to boost efficiency and risk management. Expansion is cautious and rural-focused, with cost-to-income expected around 32-34%. Notably, 41.7% of loans are three-year tenures, aiding repayment stability and portfolio quality.

3. Business Developments:

No new acquisitions or partnerships announced. The company executed accelerated write-offs and provisioning to normalize asset quality by FY26. Employee base grew 8.1% to nearly 21,000 with solid retention. Branch network expanded 4.9% YoY to 2,063 branches, helping add 2.61 lakh new borrowers in Q4, of which 43% are new-to-credit—positive for future growth and portfolio diversification.

4. Market Position & Competitive Advantage:

A leading microfinance player across 16 states and 1 UT with presence in 423 districts, CreditAccess Grameen’s classical JLG lending, multi-layered credit checks, and operational risk controls underpin asset quality and ~87% customer retention. Diverse low-cost funding mix including significant foreign borrowings (21%) supports competitive borrowing costs at 9.8%. Deep rural focus, technology adoption, and high employee stability strengthen its market moat.

5. Investor Implications:

Elevated credit costs and write-offs have pressured near-term profits but proactive risk recognition and conservative provisioning signal improving asset quality. FY26 guidance implies better ROA (2.9%-3.4%) and ROE (11.8%-13.3%) with normalized credit costs. Growth in retail finance and rural penetration offers encouraging expansion potential, though investors should watch execution risks in asset quality recovery. Strong capital and liquidity provide a reliable base for sustainable growth.