CREDITACCESS GRAMEEN LIMITED has informed the Exchange about Transcript
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CreditAccess Grameen filed the transcript of its Q4 FY25 earnings call held on May 16, 2025. FY25 was a challenging year marked by heatwaves, elections, customer over-leveraging, and the Karnataka ordinance, pushing FY25 credit cost to 7.7% (INR 1,929 crore) versus earlier guidance, and Q4 standalone profit fell to just INR 47 crore. NIM held steady at 12.7% in Q4 (12.9% for FY25), with collection efficiency (ex-arrears) at 91.9% and PAR 90 at 3.28%. Management announced FY26 guidance of 14-18% AUM growth, NIM of 12.6-12.8%, credit cost of 5.5-6%, ROA of 2.9-3.4%, and ROE of 11.8-13.3%, supported by the retail finance book which has grown to INR 1,543 crore (5.9% of AUM). MD Udaya Kumar Hebbar will retire on June 25, 2025, and CEO Ganesh Narayanan will be elevated to MD & CEO for five years from June 26, 2025. Capital adequacy remains comfortable at 25.4% with INR 2,336 crore in liquidity.
For shareholders, the call confirms that worst of the asset quality stress is largely behind, with management guiding for a meaningful recovery in profitability (ROA nearly doubling to 2.9-3.4%) and growth in FY26. The leadership transition to an internal candidate should provide continuity, while the elevated credit cost guidance of 5.5-6% still reflects ongoing cleanup of the legacy stress book, particularly from Karnataka. The stock may react positively to the clear FY26 recovery roadmap but remain sensitive to any further state-level regulatory actions similar to Karnataka.