CreditAccess Grameen (CREDITACC) Q2 24/25 earnings summary

Executive summary

• AUM/GLP grew 11.8% year-over-year to INR 25,133 crore, with active borrowers up 7.2% to 49.63 lakh and 1.46 lakh new customers added in Q2.

• Net Interest Income rose 20.8% YoY to INR 933 crore, while PPOP increased 19.5% YoY to INR 672 crore.

• PAT for Q2 FY25 was INR 186 crore, down 46.4% YoY due to higher credit costs and provisioning.

• Branch network expanded to 2,031 across 398 districts, with 55 new branches added in the quarter.

• The microfinance sector is experiencing a transient credit cycle with increased delinquencies, attributed to environmental and industry-wide factors.

Financial highlights

• Total consolidated revenue for Q2 FY25 was INR 1,453.29 crore, up from INR 1,246.94 crore in Q2 FY24.

• NIM improved to 13.5% in Q2 FY25 from 13% in Q1 FY25; interest spread rose to 11.4%.

• Disbursements for Q2 FY25 were INR 4,404 crore, down 19.4% YoY and 10.5% sequentially.

• Cost/income ratio was 30.6%, opex/GLP ratio at 4.6%, and total equity increased 20.5% YoY to INR 6,988 crore.

• Write-offs for Q2 were INR 135 crore, with provisioning at 3.53% of portfolio.

Outlook and guidance

• FY25 loan/GLP growth guidance revised to 8–12% due to muted microfinance growth and higher delinquencies.

• NIM guidance maintained at 12.8–13.0%; credit cost guidance raised to 4.5–5.0% of average on-book loans.

• ROA and ROE guidance revised to 3.0–3.5% and 12–14%, respectively.

• Stabilization of delinquencies anticipated in Q3 FY25, with improved business momentum in Q4 FY25.

• Medium-term target to reach INR 50,000 crore AUM by FY28, combining microfinance and retail finance.