CreditAccess Grameen's Q1 FY26: Surging Loans & Sharper Asset Quality! 🚀
Hey there, finance enthusiasts! Let’s dive into the latest updates from CreditAccess Grameen Limited, a prominent player in India’s microfinance sector. They’ve just dropped their interim business update for June 2025, painting a picture of robust growth and a concerted effort towards improving asset quality in the first quarter of FY26. 💪
The company’s Gross Loan Portfolio (GLP), which is essentially the total value of loans they’ve disbursed and are outstanding, saw a healthy increase. It grew from INR 25,948 crore in March 2025 to INR 26,055 crore by June 2025, even after accounting for INR 693 crore in write-offs during Q1 FY26. This growth is a solid 3.1% on a pre-write-off basis, showing strong business momentum.
Here’s a quick look at how their loan book shaped up:
Gross Loan Portfolio (GLP) in INR Crore
| Category | Mar-25 | Jun-25 |
|---|---|---|
| Total GLP | 25,948 | 26,055 |
| - Karnataka | 8,068 | 8,104 |
| - Other States | 17,879 | 17,951 |
What’s driving this growth? CreditAccess Grameen welcomed approximately 2 lakh new borrowers during Q1 FY26. This expansion is also supported by a growing team, with their employee base increasing from 20,970 in March 2025 to 21,333 in June 2025, enabling broader outreach.
Now, let’s talk asset quality, which is crucial for any lending business. The company uses Portfolio at Risk (PAR) as a key indicator. PAR 0+% represents loans overdue by 0 days or more, while PAR 90+% indicates loans overdue by 90 days or more – a good proxy for non-performing assets.
Overall, the trends are encouraging:
Key PAR Indicators (Percentage)
| Indicator | Mar-25 (Total) | Jun-25 (Total) | Mar-25 (Excl. Karnataka) | Jun-25 (Excl. Karnataka) |
|---|---|---|---|---|
| PAR 0+% | 6.9% | 5.9% | 6.1% | 4.4% |
| PAR 30+% | 5.5% | 4.9% | - | - |
| PAR 60+% | 4.3% | 4.1% | - | - |
| PAR 90+% | 3.3% | 3.3% | 3.7% | 2.5% |
As you can see, the overall PAR 0+% for their entire portfolio saw a noticeable drop from 6.9% to 5.9%. Even more impressively, if we exclude Karnataka, the PAR 0+% fell from 6.1% to a healthy 4.4%. The PAR 90+% for the total portfolio remained stable at 3.3%.
One of the most positive takeaways is the broad-based decline in PAR 15+ accretion rates across almost all operating geographies. This means fewer new loans are slipping into overdue categories, which is a strong sign for future asset quality. The company highlighted that they are achieving this while fully adhering to the MFIN Guardrails, which are responsible lending standards set by the Microfinance Institutions Network (MFIN). This commitment to fair practices adds another layer of confidence.
While most regions showed improving PAR numbers, Karnataka’s PAR 90+% did see an increase from 2.4% to 5.1%. However, the broader trend, especially in the accretion rates and the overall portfolio numbers, points towards improving health.
It’s worth noting that all these numbers are provisional and are subject to review by their auditors and approval by the Audit Committee and Board of Directors. Nevertheless, this interim update clearly signals a strong start to FY26 for CreditAccess Grameen, showcasing solid business expansion coupled with diligent asset quality management. Keep an eye on this space for more updates! 📈
source: Corporate Announcement
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