CREDITACCESS GRAMEEN LIMITED — PPTs, 22-07-2025: Investor Presentation

Here's the summary of the investor presentation:

**1. Financial Highlights:**

Q1 FY26 Interest Income was INR 1,388.1 Cr, but Profit After Tax (PAT) stood at INR 60.2 Cr, significantly impacted by accelerated loan write-offs (INR 692.5 Cr) and conservative provisioning (4.62%). Net Interest Margin (NIM) remained strong at 12.8%. Gross Loan Portfolio (GLP) was INR 26,055 Cr. Asset quality showed GNPA 4.70% and PAR 90+ 3.29%, with Capital Adequacy Ratio (CRAR) at 25.5%.

**2. Strategic Initiatives & Growth Drivers:**

The company is strategically growing its Retail Finance portfolio, now a larger share of GLP. Expansion follows a disciplined, contiguous district-based approach. Significant technology investments, like Enterprise Service Bus, are planned for operational efficiency. FY26 guidance projects 14-18% GLP growth, with profitability expected to improve in H2.

**3. Business Developments:**

Disbursements reached a Q1 high (+21.9% YoY). CAGL added 2.16 Lakh new borrowers and opened 54 new branches. A prudent strategy of accelerated write-offs for balance sheet normalization impacted the quarter's results.

**4. Market Position & Competitive Advantage:**

CAGL strengthened its microfinance market share. Its low district exposure diversifies risk. An 87% customer retention rate highlights strong loyalty. The company operates as a "low cost organized financier" with classical JLG lending and robust internal controls, emphasizing customer-centricity.

**5. Investor Implications:**

While Q1 profitability was affected by balance sheet clean-up, the company's strong momentum, stabilizing asset quality, and strategic growth drivers point to positive growth potential. Robust capital and diversified funding offer stability. Execution risk includes managing temporary elevated delinquencies and maintaining productivity during recovery.