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Informist, Tuesday, Jul. 22, 2025

--CreditAccess Apr-Jun net profit INR 601.90 mln vs INR 3.98 bln year ago 

--CreditAccess Apr-Jun total income INR 14.64 bln vs INR 15.13 bln year ago 

--CreditAccess Q1 impairment on fincl instruments INR 5.7 bln vs INR 1.7 bln 

--CreditAccess Apr-Jun net interest income INR 9.37 bln, down 1.6% on year 

--CreditAccess Apr-Jun NIM 12.8% vs 12.7% qtr ago, 13.0% year ago 

--CreditAccess gross loan portfolio INR 260.55 bln on Jun 30, dn 0.9% on yr 

--CreditAccess Apr-Jun loan disbursement INR 54.58 bln, up 21.9% on year

--CreditAccess gross NPA ratio 4.70% as on Jun 30 vs 4.76% on Mar 31 

By Vaishali Tyagi

MUMBAI – CreditAccess Gramein Ltd.'s net profit slumped nearly 85% on year in the quarter ended June, hit by a surge in impairment costs on its financial instruments. The microlender's net profit plummeted to INR 601.90 million in the latest quarter from INR 3.98 billion a year ago. 

The company's total expenses rose sharply to INR 13.83 billion in the quarter, up 41.38% on year, driven by a substantial increase in costs incurred on impairment of financial instruments, which surged over 200% on a yearly basis to INR 5.72 billion. On the revenue side, CreditAccess Gramein's total income declined 3.2% to INR 14.64 billion due to fall in interest income. The company's interest income was INR 13.88 billion, down 3.4%. However, the company's interest income rose 2.5% sequentially. More

On Tuesday, shares of the lender closed 1.1% lower at INR 1,279.70 on the National Stock Exchange. The microfinance company declared its results after market hours. 

The lender's net interest income fell 1.6% on year to INR 9.37 billion during the June quarter. Consequently, the net interest margin contracted to 12.8% from 13.0% a year ago, but expanded from 12.7% a quarter ago. The company aims to keep the net interest margin within the 12.6-12.8% range, it said. 

The non-bank lender's gross loan portfolio fell 0.9% on year to INR 260.55 billion as of Jun. 30. However, the gold loan portflio grew marginally by 1.3% on year. During the quarter, the microfinance lender disbursed loans worth INR 54.58 billion, up 21.9% on year. 

In terms of asset quality, the gross non-performing asset ratio of the lender improved to 4.70% from 4.76% a quarter ago. Cost of borrowings of the company fell to 9.7% from 9.8% a year ago. "We witnessed a broad-based decline in monthly new delinquency rate across all operating geographies, reducing to 0.46% in June 2025, from 1.34% in November 2024 supported by stable manpower, disciplined customer engagement and consistent reduction in customer leverage," said Ganesh Narayanan, chief executive officer and managing director of CreditAccess Grameen.

The company hopes to keep the cost-to-income ratio at 32-24%, backed by strict control on operating costs, while factoring in the continued efforts on bucket collections and investment in new branch infrastructure for future growth, it said. The cost-to-income ratio was 33.5%. 

The lender also sees its credit cost elevated as the industry recovers from the existent asset quality stress and aligns with the new microfinance guidelines in Apr-Sept. Credit cost in Apr-Jun was 2.23%.  End

Edited by Avishek Dutta

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