CreditAccess Grameen (CREDITACC) Q3 24/25 earnings summary

Executive summary

• Delinquency trends peaked in October–mid-November due to external disruptions but have since reversed, with new additions slowing and collection efficiency improving across geographies.

• Asset quality is stabilizing, with partial repayments from over 40% of rural borrowers and AUM/GLP growth resuming in December after eight months of contraction.

• Retail finance disbursements grew 51% year-over-year, now comprising 5% of AUM/GLP, up from 2.1% a year ago; new-to-credit customer additions rose to 42% in Q3.

• Accelerated write-offs and conservative provisioning have been implemented to address delinquencies, safeguarding future profitability but resulting in a Q3 FY25 net loss.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 24, 2025.

Financial highlights

• Net interest income rose 7.4% year-over-year to INR 862 crores in Q3 FY25; portfolio yield at 20.2%, interest rate at 10.4%.

• Collection efficiency (excluding arrears) at 93.3%, including arrears at 94.1% for Q3 FY25; December collection efficiency exceeded 99.2%.

• PAR 90 at 2.64%, GNPA at 3.99%, net NPA at 1.28% (measured at 60 DPD).

• Total write-offs for Q3 FY25 were INR 376 crores; nine months FY25 write-offs at INR 606 crores.

• NIMs declined to 12.5% in Q3 FY25 due to INR 75 crores interest reversal; nine months NIM at 13%.

• Standalone revenue from operations for the nine months ended December 31, 2024, was ₹4,345.70 crore, up from ₹3,709.17 crore year-over-year.

• Standalone net profit after tax for the nine months was ₹1,043.74 crore, compared to ₹1,445.93 crore for the year ended March 31, 2024.

Outlook and guidance

• FY25 guidance: AUM/GLP growth of 7%-8%, NIM of 12.8%-13%, credit cost of 6.7%-6.9%, ROA of 2.3%-2.4%, ROE of 9.5%-10%.

• Preliminary FY26 outlook: 18%-20% AUM/GLP growth, 4.2%-4.5% ROA, and 17%-19% ROE, with profitability expected to normalize from Q2 FY26.

• Guidance confidence is based on improved customer retention, new customer additions, and retail finance growth.