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    CreditAcc. Gram.

    CREDITACCGood
    Financial Services·20 Jan 2026
    Management Summary

    CreditAccess Grameen reported a strong recovery quarter characterized by normalizing asset quality and robust margin expansion. Management successfully navigated the recent credit cycle, utilizing accelerated write-offs to clean the book while scaling the retail finance segment to over 14% of AUM. With PAR accretion levels reverting to historical norms, the company has issued confident guidance for FY27, targeting 20%+ growth and 4.0-4.5% ROA.

    Highlights

    7

    • Net Interest Income (NII) grew 13.4% YoY to ₹977 crore, with NIM expanding 60bps QoQ to 13.9%.

    • PAT doubled QoQ to ₹252 crore; adjusted for one-time items, PAT stood at ₹266 crore with an ROA of 3.7%.

    • Asset quality showed sharp normalization with PAR 15+ accretion dropping to 18 bps in Dec-25 from 47 bps in Sep-25.

    • Disbursements for Q3 FY26 stood at ₹5,767 crore (+13.4% YoY), with exit month December crossing ₹2,200 crore.

    • Retail finance portfolio scaled to 14.1% of AUM (₹3,780 crore) compared to 11.1% in the previous quarter.

    • GNPA stood at 4.04% and Net NPA at 1.36%, predominantly measured at a conservative 60 DPD threshold.

    • Average cost of borrowing declined by 26 bps QoQ to 9.4%, with marginal cost of borrowing at 8.9%.

    What Changed2

    vs Q4 FY26

    Guidance items16 → 4 (-12)Q&A highlights8 → 3 (-5)

    Key financials

    Single quarter

    06 metrics
    1. 01Net Interest Income₹977 Cr+13.4%YoY
    2. 02NIM13.9%
    3. 03GNPA4.0%
    4. 04Net Profit (PAT)₹252 Cr+100%QoQ
    5. 05AUM₹26,566 Cr+2.6%QoQ

    Segment breakdown

    Microfinance (JLG)
    85.9% AUM Share
    Retail Finance
    ₹3,780 Cr AUM14.1% AUM Share₹3,300 Cr Unsecured (Unnati/Vishesh)₹500 Cr Secured (Mortgage/Gold/Two-Wheeler)
    List

    Guidance & targets

    4
    CategoryTargetPriority
    Profitability
    Credit Cost
    4% to 4.5%
    		High
    Profitability
    ROA
    4.0% to 4.5%
    		High
    Volume
    AUM Growth
    20% to 21%
    		Medium
    Margin
    NIM
    14% to 14.5%
    		Medium

    Risks & concerns

    4
    RiskSeverity

    MFIN Guardrail Implementation

    Approval rates for new borrowers have dropped from 65% to 55-60%, impacting acquisition momentum. — Both acknowledged

    medium

    Credit Cost Stickiness in Non-Core States

    UP, Bihar, and MP still show credit costs 15-20 bps higher than pre-crisis levels, though trending down. — Analyst downplayed

    low

    Bank Borrowing Availability

    Industry-wide reports of banks pulling back from NBFC-MFIs; CREDITACC claims <60% dependency and continued access. — Analyst acknowledged

    low

    Areas of Evasion(1)

    • Age profile of unique customers added (claimed data not in hand).

    Q&A highlights

    3

    “Our current approval rates for new borrowers... is around 55% to 60%... this used to be around 65% before the guardrails.”

    Confirms that tighter regulatory norms are structurally reducing the addressable market for new customer acquisition, requiring more effort to maintain growth.

    asked by Abhijeet Tibrewal

    2 min read5 chapters

    Detailed Narrative

    01

    Asset Quality Normalization and PAR Accretion

    The quarter was marked by a significant improvement in asset quality, with X bucket collection efficiency reaching 99.71% in December 2025. Monthly PAR 15+ accretion saw a sharp decline from 47 bps in September to just 18 bps in December, signaling a return to historical stability. Management noted that Karnataka, a core market, has shown a notable recovery with asset quality reverting to historical levels, supported by tighter credit oversight.

    02

    Strategic Pivot to Retail Finance

    Retail finance now accounts for 14.1% of the total AUM, up from 11.1% in Q2 FY26. The portfolio reached ₹3,780 crore, driven by the graduation of high-quality vintage customers from group lending to individual business loans. While the average ticket size in some retail segments like 'Vishesh' loans has moderated to ₹80,000 to ensure better risk underwriting, the segment remains a key growth engine for FY27.

    03

    Margin Expansion and Liability Management

    NIM increased by 60 bps QoQ to 13.9%, aided by a 30 bps improvement in yields and a 26 bps reduction in the average cost of borrowings (9.4%). The company raised ₹3,917 crore during the quarter at a marginal cost of 8.9%. Management expects NIMs to remain in the 14.0-14.5% range for FY27, though they may moderate pricing for customers if credit costs continue to decline.

    04

    FY27 Growth and Profitability Outlook

    Management has set a confident growth target of 20-21% for FY27, with microfinance expected to grow in the early teens and retail finance providing the additional momentum. The company is targeting an annualized ROA of 4.0-4.5% and an ROE of 16-17%. Credit cost guidance for the next fiscal is pegged at 4.0-4.5%, assuming a monthly PAR 15+ accretion rate of 30-35 bps.

    05

    Operational Efficiency and Digital Adoption

    The cost-to-income ratio stood at 34.1%, or 32.3% when adjusted for a one-time📎 ₹18 crore impact from new labour codes. Digital adoption is accelerating via the 'Grameen Mahi' platform, which has nearly 1 million downloads and helped achieve 20% digital collections by December 2025. Employee attrition also improved significantly, dropping to 30.2% from 35.2% a year ago.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.