CreditAccess Grameen shares soar over 9% after strong Q1FY26 business update
CreditAccess Grameen (CAGL) began FY26 on a strong footing, delivering its highest-ever first-quarter disbursements. The company added nearly 2 lakh new borrowers during the quarter, indicating continued demand and successful expansion of its lending network. On a sequential basis, the company posted a 3.1 percent growth in its Gross Loan Portfolio (GLP), excluding write-offs, aligning with MFIN Guardrails and underlining steady credit deployment.
As of June 2025, the company's GLP stood at ₹ 26,055 crore, slightly higher than the ₹ 25,948 crore recorded in March 2025. Karnataka remained the largest contributor with a GLP of ₹ 8,104 crore, while other states collectively accounted for ₹ 17,951 crore. The company also strengthened its workforce, expanding its employee base to 21,333 from 20,970 in the previous quarter.
One of the key highlights of the update was the broad-based improvement in asset quality. The company reported a decline in Portfolio at Risk (PAR) metrics across time buckets. PAR 0+ improved significantly to 5.9 percent from 6.9 percent in March 2025, while PAR 30+ and PAR 60+ fell to 4.9 percent and 4.1 percent, respectively. PAR 90+ remained steady at 3.3 percent. Notably, excluding Karnataka, PAR 0+ fell further to 4.4 percent from 6.1 percent, suggesting improved credit discipline in other operating geographies.
A state-wise review showed encouraging trends. Maharashtra, Tamil Nadu, Madhya Pradesh, and Bihar saw meaningful reductions in both PAR 0+ and PAR 90+. In Bihar, which had seen elevated stress earlier, PAR 0+ dropped sharply to 8.5 percent from 12.2 percent, while PAR 90+ improved to 5.2 percent from 7.3 percent. However, Karnataka remained a soft spot. PAR 90+ in the state increased to 5.1 percent from 2.4 percent, even though PAR 0+ saw only a marginal rise.
The monthly accretion rate of PAR 15+ to Assets Under Management (AUM) has steadily declined across most states, a positive signal of improved collections and borrower discipline. Karnataka's accretion rate dropped to 0.58 percent in June 2025 from 2.02 percent in March. Tamil Nadu, another key market, recorded a consistent decline in delinquency with the PAR 15+ accretion rate falling to 0.29 percent.
Other major states also posted healthy trends. Bihar, Uttar Pradesh, Maharashtra, and Madhya Pradesh showed accretion rates in the 0.34–0.52 percent range as of June 2025. These improvements reflect the company's strong credit monitoring framework, operational execution, and successful risk containment strategies.
The company credited its performance to enhanced internal systems, operational efficiencies, and workforce support. During the quarter, CAGL reported disciplined write-offs totalling ₹ 693 crore, which included accelerated provisions. These efforts, along with a proactive credit risk management approach, helped stabilise non-performing assets and improve overall portfolio health. The management expressed confidence in sustaining this positive momentum into subsequent quarters.
Following the upbeat update, CreditAccess Grameen shares surged as much as 9.1 percent to an intra-day high of ₹ 1,355 on the NSE, just shy of its 52-week high of ₹ 1,369.25 hit in July 2024. The rally marked the fifth straight month of gains for the stock.
Despite a 6 percent decline over the past 12 months, the stock has delivered a strong comeback in recent months. It has already risen over 10 percent in July. This follows a 5.7 percent gain in June, 5.5 percent in May, 14 percent in April, and 3.5 percent in March. The stock, however, faced pressure earlier this year, falling 15 percent in February after a sharp 22 percent jump in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
2 days ago
- Business Standard
CreditAccess Grameen surges 9%, stock nears 52-week high; here's why
CreditAccess Grameen share price Shares of CreditAccess Grameen surged 9 per cent to ₹1,355 on the BSE in Friday's intra-day trade amid heavy volumes after the company's business momentum improved, coupled with stabilizing asset quality in the June 2025 quarter (Q1FY26). With today's rally, the stock price of CreditAccess Grameen has recovered 81 per cent from its 52-week low of ₹750.05 touched on January 27, 2025. It had hit a 52-week high of ₹1,369.25 on July 4, 2024. At 10:14 AM; the stock was trading 7 per cent higher at ₹1,329.60, as compared to 0.01 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped nearly 10-fold, with a combined 3.82 million shares changing hands on the NSE and BSE. CreditAccess Grameen Q1FY26 update CreditAccess Grameen has reported a marginal 0.4 per cent quarter-on-quarter (QoQ) rise in gross loan portfolio (GLP) to ₹26,055 crore in the June 2025 quarter (Q1FY26), reflecting modest growth post write-offs of ₹693 crore. The microfinance institutions (MFI) had posted GLP of ₹25,948 crore in Q4FY25. Karnataka GLP increased slightly to ₹8,104 crore (vs. ₹8,068 crore in Q4), while other states' GLP rose to ₹17,951 crore (vs. ₹17,879 crore). Portfolio at Risk metrics showed improvement: overall PAR 0+ declined to 5.9 per cent (vs. 6.9 per cent in Q4), with PAR 0+ excluding Karnataka dropping to 4.4 per cent (vs. 6.1 per cent). The company added ~2 lakh new borrowers during the quarter supporting continued business momentum. CreditAccess Grameen said the Q1FY26 sets a new benchmark, driven by highest first quarter disbursement and strong business momentum. The company delivered a healthy QoQ growth of 3.1 per cent (pre write-off basis) while fully adhering with MFIN Guardrails. Considering the evolving business environment, the management in May month said that they are aiming for asset under management (AUM) growth of 14-18 per cent of which MFI growth will be 8-12 per cent and the balance from retail finance, NIM of 12.6-12.8 per cent, credit cost of 5.5-6.0 per cent, ROA of 2.9-3.4 per cent and ROE of 11.8-13.3 per cent in FY26. Brokerages view on CreditAccess Grameen Improving asset quality and gradual stabilization in performance post accelerated write-offs; sustained improvement in collection efficiency indicates gradual recovery. However, higher exposure in Karnataka amid concerns on collections remains watchful, ICICI Securities said in a note. A trend reversal is on the horizon in the MFI sector and is expected to play out over the next couple of quarters, with the sector likely nearing normalization by H2FY26. That said, Motilal Oswal Financial Services strongly believes that the upcoming three months present an opportunity to separate high-quality franchises from weaker ones, with performance divergence across the MFI sector expected to be increasingly evident. Backed by a strong capital position (Tier-1 of ~24 per cent), CreditAccess Grameen is well-placed to embark on a healthy loan growth trajectory as delinquency trends show further signs of normalization. CreditAccess Grameen trades at 2.0x FY27E P/BV, and its premium valuation over MFI peers is likely to sustain, driven by stronger confidence in its ability to return to normalcy ahead of its peers, the brokerage firm said. About CreditAccess Grameen CreditAccess Grameen is a leading Indian microfinance institution headquartered in Bengaluru, focused on providing micro-loans to women customers predominantly in rural areas across India. The company is now operating across 423 districts in 16 states and one union territory (Puducherry) through 2,063 branches. The company's promoter is CreditAccess India B.V., a multinational company specializing in micro and small enterprise financing. It is backed by institutional investors and has a micro-lending experience in India of more than a decade.
Mint
2 days ago
- Mint
CreditAccess Grameen shares soar over 9% after strong Q1FY26 business update
Shares of CreditAccess Grameen surged over 9 percent in intra-day trade on Friday, July 4, after the company released its interim business update for the June 2025 quarter (Q1FY26). The microfinance lender reported record disbursements, robust borrower additions, and a notable improvement in asset quality, fueling investor optimism and sending the stock close to its 52-week high. CreditAccess Grameen (CAGL) began FY26 on a strong footing, delivering its highest-ever first-quarter disbursements. The company added nearly 2 lakh new borrowers during the quarter, indicating continued demand and successful expansion of its lending network. On a sequential basis, the company posted a 3.1 percent growth in its Gross Loan Portfolio (GLP), excluding write-offs, aligning with MFIN Guardrails and underlining steady credit deployment. As of June 2025, the company's GLP stood at ₹ 26,055 crore, slightly higher than the ₹ 25,948 crore recorded in March 2025. Karnataka remained the largest contributor with a GLP of ₹ 8,104 crore, while other states collectively accounted for ₹ 17,951 crore. The company also strengthened its workforce, expanding its employee base to 21,333 from 20,970 in the previous quarter. One of the key highlights of the update was the broad-based improvement in asset quality. The company reported a decline in Portfolio at Risk (PAR) metrics across time buckets. PAR 0+ improved significantly to 5.9 percent from 6.9 percent in March 2025, while PAR 30+ and PAR 60+ fell to 4.9 percent and 4.1 percent, respectively. PAR 90+ remained steady at 3.3 percent. Notably, excluding Karnataka, PAR 0+ fell further to 4.4 percent from 6.1 percent, suggesting improved credit discipline in other operating geographies. A state-wise review showed encouraging trends. Maharashtra, Tamil Nadu, Madhya Pradesh, and Bihar saw meaningful reductions in both PAR 0+ and PAR 90+. In Bihar, which had seen elevated stress earlier, PAR 0+ dropped sharply to 8.5 percent from 12.2 percent, while PAR 90+ improved to 5.2 percent from 7.3 percent. However, Karnataka remained a soft spot. PAR 90+ in the state increased to 5.1 percent from 2.4 percent, even though PAR 0+ saw only a marginal rise. The monthly accretion rate of PAR 15+ to Assets Under Management (AUM) has steadily declined across most states, a positive signal of improved collections and borrower discipline. Karnataka's accretion rate dropped to 0.58 percent in June 2025 from 2.02 percent in March. Tamil Nadu, another key market, recorded a consistent decline in delinquency with the PAR 15+ accretion rate falling to 0.29 percent. Other major states also posted healthy trends. Bihar, Uttar Pradesh, Maharashtra, and Madhya Pradesh showed accretion rates in the 0.34–0.52 percent range as of June 2025. These improvements reflect the company's strong credit monitoring framework, operational execution, and successful risk containment strategies. The company credited its performance to enhanced internal systems, operational efficiencies, and workforce support. During the quarter, CAGL reported disciplined write-offs totalling ₹ 693 crore, which included accelerated provisions. These efforts, along with a proactive credit risk management approach, helped stabilise non-performing assets and improve overall portfolio health. The management expressed confidence in sustaining this positive momentum into subsequent quarters. Following the upbeat update, CreditAccess Grameen shares surged as much as 9.1 percent to an intra-day high of ₹ 1,355 on the NSE, just shy of its 52-week high of ₹ 1,369.25 hit in July 2024. The rally marked the fifth straight month of gains for the stock. Despite a 6 percent decline over the past 12 months, the stock has delivered a strong comeback in recent months. It has already risen over 10 percent in July. This follows a 5.7 percent gain in June, 5.5 percent in May, 14 percent in April, and 3.5 percent in March. The stock, however, faced pressure earlier this year, falling 15 percent in February after a sharp 22 percent jump in January. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
11-06-2025
- Economic Times
CreditAccess Grameen shares in focus after securing $100 million syndicated loan from Asian banks
Live Events CreditAcces Grameen share price target and performance (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of CreditAccess Grameen will be in focus on Wednesday after the company raised $100 million through external commercial borrowing from a group of banks across South Asia and the Far syndicated loan facility, structured in dual currencies—Japanese yen and US dollars—was led by Standard Chartered Bank, the company said in a regulatory Grameen is India's largest non-banking financial company focused on microfinance (NBFC-MFI).The facility was initially launched with a base size of $70 million in November 2024 but was later upsized to $100 million, with participation from seven banks, primarily from Korea and proceeds will be used to fund eligible social projects, the company to Trendlyne, the average target price for CreditAccess Grameen is Rs 1,191, suggesting a marginal downside of about 1% from current levels. Of the 16 analysts tracking the stock, most have a 'Buy' the technical front, the stock's Relative Strength Index (RSI) stands at 59.5—well within the neutral zone (below 30 is oversold, above 70 is overbought). Meanwhile, the MACD is at 20.3 and remains above its centerline and signal line, indicating a bullish stock is currently trading above all key moving averages — including its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs) — reinforcing the positive of CreditAccess Grameen closed 0.75% lower at Rs 1,196.2 on the BSE in the previous session. The stock is up 34% year-to-date but is down 21% over the past 12 months.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
