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    Creditaccess Grameen Limited

    CREDITACC
    Financial Services·20 Jan 2026
    Management Summary

    CreditAccess Grameen reported a strong Q3 FY26, marked by significant asset quality normalization with collection efficiency at 99.71% and PAR 15+ accretion dropping to 18 bps. Disbursements grew 13.4% YoY, and NIM expanded by 60 bps QoQ to 13.9%, leading to a doubling of PAT to INR 252 Crore. The company is focused on quality growth, with retail finance contributing increasingly to the portfolio and digital adoption gaining traction.

    Highlights

    5

    • X bucket collection efficiency stood at 99.71% in December 2025, indicating strong asset quality.

    • Monthly PAR 15+ accretion declined sharply to 18 bps in December 2025 from 47 bps in September 2025, showing significant improvement.

    • Disbursements for Q3 FY26 reached INR 5,767 Crore, an increase of 13.4% YoY.

    • Net Interest Margin (NIM) increased by 60 bps QoQ to 13.9% in Q3 FY26, driven by lower cost of borrowings.

    • Profit After Tax (PAT) doubled QoQ to INR 252 Crore, with adjusted ROA and ROE at 3.7% and 14.6% respectively.

    Concerns

    3

    • The company incurred a one-time impact of INR 18 Crore on account of new labour codes pertaining to employee benefit obligations.

    • Q3 FY26 included accelerated write-offs of INR 181 Crore pertaining to 180 DPD non-paying accounts.

    • Credit cost for Q3 FY26 included an additional INR 59 Crore due to accelerated write-offs and INR 37 Crore due to increased ECL rates.

    Key financials

    Metrics

    13

    Periods

    2

    Headline

    12
    • Disbursements
      ₹5,767 Cr
      YoY+13.4%
    • Portfolio Growth (QoQ adjusted)
      ₹26,566 Cr
      QoQ+3.3%
    • Net Interest Income
      ₹977 Cr
      YoY+13.4%
    • NIM
      13.9%
      QoQ+0.6%
    • PAT
      ₹252 Cr
      QoQ+100%

    Q3 FY26

    1
    • Credit Cost
      ₹343 Cr

    Segment breakdown

    • Retail Finance₹3,780 Cr50.0%
    • Unnati Loan (Individual Lending)₹1,700 Cr22.5%
    • Lighter Individual Lending₹1,600 Cr21.2%
    • Mortgage Business Loans₹266 Cr3.5%
    • Home Loan Book₹200 Cr2.6%
    • Two-Wheeler Book₹13 Cr0.2%
    Donut· Share of Portfolio

    Capital allocation

    1
    CategoryHeadline
    Liquidity

    Undrawn ₹2,397 crores

    Ample liquidity at INR 2,397 Crore, amounting to 8.4% of total assets. Funding position strong with INR 3,431 Crore of sanctions in hand and INR 5,781 Crore sanctions in pipeline. Foreign borrowings stood healthy at 24.3%.

    Guidance & targets

    11
    CategoryTargetPriority
    Credit Cost
    FY27 Credit Cost
    4% to 4.5%
    		Medium
    Credit Cost
    Monthly PAR 15+ Accretion Rate
    20 to 25 bps
    		Medium
    ROA
    ROA Range
    4.0-4.5%
    		Medium
    ROA
    Cross-cycle ROA
    4%
    		Medium
    NIM
    NIM Range
    14% to 14.5%
    		Medium
    Credit Growth
    Overall Growth Rate
    at least 20%
    		Medium
    Credit Growth
    Microfinance Growth Rate
    early teens (10-12%)
    		Medium
    Retail Finance
    Retail Finance Book Share
    a little further than 15%
    		Medium
    Foreign Borrowings
    Foreign Borrowings Share
    25-30%
    		Medium
    Provisioning
    Stage 1 Provisioning
    closer to 1.5%
    		Medium
    ROE
    Cross-cycle ROE
    16%-17%
    		Medium

    What to watch in Q4 FY26

    5

    FY27 Credit Cost Guidance Revision

    May
    Current4.0-4.5%
    TargetPotential lower range

    Why it matters

    A lower credit cost guidance would directly improve profitability outlook and signal sustained asset quality improvement.

    We will need to watch it for a few more months. And probably by May, we will try and come back with a clearer guidance.

    Risks & concerns

    5
    RiskSeverity

    Credit discipline in Karnataka state

    Analyst noted some non-MFI lenders still report issues, but management stated their own strong recovery and return to normal levels. — Analyst acknowledged

    medium

    Bank borrowing lines drying up for NBFC-MFIs

    Management stated their diversification strategy and lower dependency on bank term loans (less than 60%) mitigates this sector-wide concern. — Analyst downplayed

    low

    Higher rejection rates for new borrowers

    Approval rates for new borrowers are 55-60% (vs 65% pre-guardrails), requiring more effort for customer acquisition. — Management acknowledged

    medium

    Temporary lull in business momentum

    October 2025 saw a temporary lull due to festive seasonality, but momentum accelerated thereafter. — Management acknowledged

    low

    One-time impact of new labour codes

    INR 18 Crore impact on employee benefit obligations in Q3 FY26. — Management acknowledged

    low

    Q&A highlights

    8

    “all states are trending downwards. It's just a matter of time. And we are consistently seeing that all states are trending downwards. ... those numbers were around 40 bps to 50 bps in UP, Bihar and MP, which is now in the range of 25 bps to 30 bps.”

    Provides specific data on the improving asset quality in non-core states, indicating a positive trend.

    asked by Shreya Shivani

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Highlights

    CreditAccess Grameen delivered a strong Q3 FY26, reaffirming the stability of its business model. The company achieved an X bucket collection efficiency of 99.71% in December 2025, alongside a sharp decline in monthly PAR 15+ accretion to 18 bps. Disbursements for the quarter grew 13.4% YoY to INR 5,767 Crore, contributing to a sequential portfolio growth of 2.6% to INR 26,566 Crore (3.3% QoQ adjusted for write-offs).

    02

    Asset Quality Normalization and MFIN Guardrails Impact

    Asset quality trends normalized across all operating geographies, with Karnataka showing a notable recovery to historical levels. The GLP of borrowers with >3 lenders significantly reduced to 4.9% in December 2025 from 25.3% in August 2024, demonstrating the positive impact of MFIN guardrails. PAR 90 stood at 2.94%, GNPA at 4.04%, and Net NPA at 1.36%, predominantly measured at 60 DPD.

    03

    Credit Cost and Provisioning Adequacy

    The total credit cost for Q3 FY26 was INR 343 Crore, which included INR 59 Crore from accelerated write-offs and INR 37 Crore from increased ECL rates. Excluding these one-time📎 impacts, the non-annualized credit cost was 96 bps. The company maintains robust provisioning, holding 132 bps (INR 335 Crore) over PAR 90 and 280 bps (INR 733 Crore) over IRAC prudential norms, indicating a strong buffer against potential losses.

    04

    Profitability and Margin Expansion

    Operating profitability strengthened, with Net Interest Income growing 13.4% YoY to INR 977 Crore, supported by a portfolio yield of 21.0%. The average cost of borrowings declined by 26 bps QoQ to 9.4%, leading to a 60 bps QoQ expansion in NIM to 13.9%. Profit After Tax (PAT) doubled QoQ to INR 252 Crore, translating to an adjusted ROA of 3.7% and ROE of 14.6% (excluding a one-time📎 INR 18 Crore labor code impact).

    05

    Strategic Growth in Retail Finance and Borrower Acquisition

    Borrower acquisition remains a core growth strategy, with 2.1 Lakh new borrowers added in Q3 FY26 and 6.4 Lakh in 9M FY26. The new-to-credit ratio stood at a healthy 39%. The retail finance portfolio continued its steady scale-up, now representing 14.1% of AUM (INR 3,780 Crore), up from 11.1% in Q2, driven by a shift of quality vintage customers towards individual business loans like Unnati (INR 1,700 Crore) and other lighter individual lending products (INR 1,600 Crore).

    06

    Digital Adoption and Funding Position

    The company's digital platform, Grameen Mahi, has achieved close to 1 million downloads and facilitated 20% digital collections by December 2025, enhancing customer engagement and transparency. CreditAccess Grameen maintained a strong funding position, raising INR 3,917 Crore in Q3 FY26 at a marginal cost of 8.9%. Foreign borrowings constituted 24.3% of the total, moving closer to the medium-term target of 25-30% by FY28, with ample liquidity of INR 2,397 Crore.

    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.