CreditAccess Grameen Limited is an India-based microfinance company focused on providing micro-loans to women customers predominantly in rural areas. CreditAccess Grameen Limited is a leading microfinance institution in India, providing financial services to low-income households, primarily women, in rural and semi-urban areas. It holds a 6% market share in the overall microfinance industry.
The Company has Pan India presence in approximately 16 states and one union territory of India, through 1,967 branches across 383 districts. USD 3.05+ Billion AUM | 4.6+ Million Customers | 20,970+ Employees as of FY25, making it one of the largest microfinance institutions in the country.
The Company operates in a single business segment that is lending to members. It has a range of products, designed in keeping various life cycle needs of its customers. The company offers comprehensive financial solutions through multiple product categories.
Its Microfinance- Group lending offers Emergency Loan, Family Welfare Loans, Home Improvement Loan, and Income Generation Loan. Its Retail Finance offers Grameen Vikas Loan, Gruha Vikas Loan, Grameen Two-Wheeler Loan, Grameen Swarna Loan, Grameen Affordable Housing Loan, and Unnati Loan. Its Digital lending includes MAHI, which is a customer application; Pragathi Digital Loan, and Multi-Purpose Digital Loan.
The company also provides distribution products including grameen suraksha, life insurance, and national pension scheme (NPS) - Swavalamban. It has tied up with various insurance service providers, including HDFC Life and Kotak Life to provide insurance coverage to customers and spouse/co-borrowers (applicable for retail finance).
CreditAccess Grameen has a Market Cap of ₹20,614 Crore as of the latest available data, positioning CreditAccess Grameen as a significant player in the Indian microfinance sector.
For Q4 FY25 (ended March 2025), CreditAccess Grameen Ltd reported an 88.1% year-on-year (YoY) decline in net profit to ₹47.2 Crore for the quarter ended March 2025 (Q4FY25), owing to conservative provisioning and accelerated write-offs. However, For the full financial year FY25, the company's net profit rose 63.2% YoY to ₹531.4 Crore.
The company's financial metrics for Q4 FY25 showed:
- Net interest income (NII) declined 5.0% to ₹876.1 Crore in Q4 FY25.
- Net interest margin dropped to 12.7% from 13.1% in Q4 FY24.
- Total write-off stood at ₹518.2 Crore in Q4, including ₹479.2 Crore in accelerated write-offs, resulting in an additional credit cost of ₹150.7 Crore.
For Q3 FY25 (ended December 2024), The revenue for CreditAccess Grameen Ltd in the Q3 results 2024 was ₹1,381.93 Crore. However, The net profit for CreditAccess Grameen Ltd in the Q3 results 2024 was ₹-99.52 Crore.
The company expanded its branch network by opening 100 new branches during FY25, demonstrating its commitment to geographical expansion. New Borrower Addition: 2.61 lakh in Q4 FY25, 7.49 lakh for FY25.
Retail finance has shown significant growth, with its contribution to the AUM increasing from 2.7% to 5.9% year-over-year. Retail Finance Contribution: INR 1,543 Crore, 5.9% of AUM.
The company has secured international backing with CreditAccess Grameen announced that it has secured approval for a USD 50 million commitment from the International Finance Corporation (IFC). The funding will help CA Grameen reach 3-4 million additional women borrowers over the lifecycle of the project.
The company has faced operational challenges, particularly in Karnataka. The company faced challenges in Karnataka due to operational ambiguities and political sensitivities, impacting growth and credit costs. Gross non-performing assets (NPAs) rose sharply to 4.76% as of March 2025, up from 1.18% a year ago.
Credit costs were higher than anticipated, primarily due to issues in Karnataka, with a total write-off of INR1,124 Crore for FY25. Despite these challenges, collection efficiency remains high, with over 99% success attributed to proactive management strategies.
Considering the evolving business environment, the company is targeting loan portfolio growth of 14–18% in FY26. Of this, growth in the microfinance segment will be 8–12%, with the remainder coming from retail finance, indicating a balanced approach to growth across different segments.
The company continues to focus on improving asset quality and customer engagement. The continued effort to address ground-level challenges, reduce customer leverage, and expand the on-ground workforce has significantly improved customer engagement. "This has enabled more frequent and disciplined follow-ups on delinquent accounts, resulting in improved collections," according to the company's management.
Looking ahead, management is optimistic about achieving targeted growth rates, supported by improved operational stability and a commitment to monitoring credit costs amidst evolving market conditions.
