CREDITACCESS GRAMEEN LIMITED has informed the Exchange regarding a press release dated May 16, 2025, titled "CreditAccess Grameen Limited - Fourth Quarter & Full Year FY24-25 Results".
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CreditAccess Grameen, India's largest NBFC-MFI, reported FY25 Profit After Tax of INR 531.4 crore with ROA of 1.9% and ROE of 7.7%, showing resilience amid sector headwinds. Total income grew 11.3% YoY to INR 5,756.1 crore, but the loan book (AUM) shrank 2.9% to INR 25,948 crore and the borrower base dropped 4.6% to 46.94 lakh, reflecting stress in the microfinance sector. Q4 FY25 was weak, with PAT falling sharply to just INR 47.2 crore due to heavy impairment provisions of INR 582.9 crore and write-offs of INR 518.2 crore, though the company highlighted that asset quality stress is now stabilizing. The balance sheet remains strong with CRAR of 25.4%, liquidity of INR 2,336 crore, and AA-/Stable credit rating. Management guided for FY26 AUM growth of 14-18%, ROA of 2.9-3.4%, and ROE of 11.8-13.3%, signaling a recovery year ahead.
Short-term sentiment may be muted due to the weak Q4 print and elevated write-offs, but the strong capital cushion, stabilizing asset quality, and clear FY26 recovery guidance are positives. Shareholders should watch for improvement in collection efficiency and PAR (portfolio at risk) trends in coming quarters to confirm the turnaround.