CreditAccess Grameen , a leading microfinance institution, has demonstrated a remarkable turnaround with its latest business update showing significant improvement in asset quality and renewed growth momentum. The company's December 2025 performance indicates strong recovery across all operating geographies, marking a decisive shift from earlier challenges.

Strong Asset Quality Recovery

The company achieved a dramatic improvement in asset quality metrics, with the Portfolio at Risk (PAR) 15+ accretion rate declining sharply to 0.18% in December 2025. This represents a substantial improvement from the elevated levels witnessed in previous quarters, demonstrating effective risk management and operational excellence.

Robust Business Growth

CreditAccess Grameen reported strong operational performance in Q3 FY26, with disbursements reaching ₹5,805 crore, representing a 26% month-on-month growth in December 2025. The company added 2.10 lakh new borrowers during the quarter, contributing to a total of approximately 6.50 lakh new borrowers added in the first nine months of FY26.

Geographic Performance Normalization

The company witnessed asset quality normalization across all operating geographies, with Karnataka emerging as one of the best-performing states. Karnataka's PAR 15+ accretion rate improved dramatically to 0.13% in December 2025, marking a return to its earlier strong asset quality trends. Other key states also showed significant improvement, with Tamil Nadu at 0.18%, Maharashtra at 0.22%, and Madhya Pradesh at 0.26%.

Strategic Expansion and Infrastructure

CreditAccess Grameen continued its strategic expansion with 165 new branches opened in the first nine months of FY26, including 15 branches added in Q3 FY26. The company maintained a stable employee base of 21,701 as of December 2025, ensuring operational continuity while managing costs effectively.

Write-offs and Portfolio Management

The company undertook write-offs of ₹259 crore (including accelerated write-offs) in Q3 FY26, reflecting its proactive approach to portfolio management. Despite these write-offs, the Gross Loan Portfolio (GLP) grew to ₹26,566 crore, with Karnataka contributing ₹7,989 crore and other states contributing ₹18,577 crore.

CreditAccess Grameen's December 2025 business update demonstrates the company's successful navigation through challenging market conditions. With asset quality normalization across geographies and renewed growth focus, the company appears well-positioned for sustainable growth in the microfinance sector. The strong recovery in Karnataka, combined with improved performance across all states, reinforces the company's operational resilience and strategic execution capabilities.

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.