Credit Access Grameen , a leading microfinance institution, has reported its highest ever first-quarter disbursements, showcasing resilience amid improving asset quality. The company's performance indicates positive momentum as it navigates through a challenging credit cycle.

Financial Performance

CreditAccess Grameen reported a Profit After Tax (PAT) of Rs. 60.00 crore, with a Return on Assets (ROA) of 0.90% and Return on Equity (ROE) of 3.40%. The company's net interest income grew by 7% quarter-on-quarter to Rs. 937.00 crore, with a portfolio yield of 20.30%.

Asset Quality Improvement

The company witnessed a gradual improvement in asset quality, with the Portfolio at Risk (PAR) 15+ accretion rate declining to 0.46% in June from 1.34% in November. Karnataka, which had been a concern, showed signs of improvement with PAR 15+ accretion reducing to 0.58% in June from 2.00% in February.

Write-offs and Provisions

CreditAccess Grameen undertook accelerated write-offs of Rs. 693.00 crore, including Rs. 603.00 crore related to accounts past due for 180+ days. This resulted in additional credit costs of Rs. 193.00 crore for the quarter. The company maintains a conservative provisioning approach, holding 133 bps or Rs. 331.00 crore higher provisions over PAR 90.

Business Growth and Customer Acquisition

The company added 216,000 borrowers, with 43% being new-to-credit customers. The retail finance portfolio saw significant growth, increasing from 2.90% to 6.80% year-on-year. CreditAccess Grameen expanded its branch network, adding 54 new branches across a mix of vintage markets and newer geographies.

Operational Metrics

• Employee base: 21,333
• Attrition rate: 27.10%
• Cost-to-income ratio: 33.50%
• Pre-Provision Operating Profit (PPOP): Rs. 656.00 crore
• Capital adequacy ratio: 25.50%

Funding and Liquidity

CreditAccess Grameen raised Rs. 2,570.00 crore, including partial drawdowns from its maiden US $100 million multi-currency syndicated social loan. The company maintained adequate liquidity levels with cash and cash equivalents at Rs. 2,025.00 crore, amounting to 7.30% of total assets.

Outlook

Management expects robust profitability in the second half of the fiscal year and maintains its credit cost guidance of 5.50%-6.00% for the year. The company remains confident in its growth trajectory, supported by favorable monsoon forecasts and strengthening rural sentiment.

CreditAccess Grameen's performance demonstrates its ability to navigate challenges while maintaining growth momentum. The company's focus on asset quality improvement and strategic expansion in retail finance positions it well for sustainable growth in the microfinance sector.

CreditAccess Grameen Limited , India's largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), has announced its financial results for the first quarter and provided guidance on its Net Interest Margin (NIM) for FY26.

Q1 Financial Highlights

• Total income stood at ₹1,463.63 crore, down 3.2% year-on-year from ₹1,512.58 crore in the same quarter last year.
• Net Interest Income (NII) decreased slightly to ₹937.00 crore, compared to ₹952.50 crore in the same quarter last year.
• Profit After Tax (PAT) saw a significant decline to ₹60.19 crore, down 84.9% from ₹397.66 crore in the same period last year.
• The company's Gross Loan Portfolio (GLP) remained relatively stable at ₹26,055.00 crore, a marginal decrease of 0.9% year-on-year.

Asset Quality and Provisions

• Gross Non-Performing Assets (GNPA) ratio stood at 4.70%, up from 1.46% in the same quarter last year.
• Net Non-Performing Assets (NNPA) ratio was 1.78%.
• The company maintained a provision coverage ratio of 63.16%.

Operational Metrics

• Disbursements grew by 21.9% year-on-year to ₹5,458.00 crore.
• The company added 2.16 lakh new borrowers, with 43% being new-to-credit customers.
• The branch network expanded by 7.0% year-on-year to 2,114 branches.
• The employee base grew by 8.5% year-on-year to 21,333.

Net Interest Margin Projection for FY26

CreditAccess Grameen has provided guidance on its Net Interest Margin (NIM) for the fiscal year 2025-26. The company projects its NIM to be between 12.6% and 12.8% for FY26. This outlook offers investors insight into the company's expected profitability from its core lending operations for the coming fiscal year.

Management Commentary

Commenting on the results, Mr. Ganesh Narayanan, Chief Executive Officer and Managing Director (Designate) of CreditAccess Grameen, said, "We have commenced FY26 with a positive business momentum, setting the tone for the year ahead. Our Q1 FY26 performance reflects progress across all key dimensions of the business with the highest-ever first-quarter disbursements of ₹5,458 crore."

He further added, "We witnessed a broad-based decline in monthly new delinquency rate across all operating geographies, reducing to 0.46% in June, from 1.34% in November supported by stable manpower, disciplined customer engagement and consistent reduction in customer leverage."

Future Outlook

The company maintains an optimistic outlook for FY26, citing favorable monsoon forecasts and strengthening rural sentiment as factors laying the groundwork for sectoral revival. CreditAccess Grameen's focus on expanding its Retail Finance portfolio, which grew by 134.1% year-on-year, is expected to be a key growth driver.

As CreditAccess Grameen navigates through FY26, the projected Net Interest Margin of 12.6-12.8% suggests the company's confidence in maintaining strong profitability despite the challenges faced in the previous quarter. Investors and analysts will be closely watching how the company balances its growth ambitions with asset quality management in the coming quarters.