CreditAccess Grameen Q2 net profit falls 32% on higher provisions
Microfinance lender sees profit decline amid higher write-offs, but net interest income and margins show sequential improvement
 "CreditAccess Grameen Q2 net profit falls 32% on higher provisions")
Microfinance lender CreditAccess Grameen Ltd reported a 32.4 per cent year-on-year (YoY) decline in net profit to ₹125.8 crore for the quarter ended September 2025 (Q2FY26), primarily due to higher provisioning. Sequentially, however, net profit rose 109 per cent from ₹60.2 crore in the quarter ended June 2025 (Q1FY26).
Ganesh Narayanan, Managing Director and Chief Executive Officer of CreditAccess Grameen, said in a statement: “We reported an improved second-quarter performance, reflecting consistent business momentum.”
Its stock closed 0.19 per cent higher at ₹1,474.60 per share on the BSE.
NII rises, margins improve sequentially
The company’s analyst presentation showed that net interest income (NII) rose 4.7 per cent YoY to ₹975.9 crore in Q2FY26. Sequentially, NII increased 4.2 per cent from ₹937 crore in Q1FY26.
Its net interest margin (NIM) stood at 13.3 per cent in Q2FY26, compared with 13.5 per cent in the same quarter last year. Sequentially, it improved from 12.8 per cent in Q1FY26.
Higher write-offs impact profitability
The Bengaluru-based microfinance lender’s total write-offs stood at ₹682.9 crore in Q2FY26, including ₹603.2 crore in accelerated write-offs, leading to an additional credit cost of ₹192.1 crore.
Gross non-performing assets (NPAs) rose to 3.65 per cent as of September 2025, up from 2.44 per cent a year earlier. However, NPAs improved sequentially from 4.70 per cent at the end of June 2025.
Loan portfolio growth moderates
The company’s gross loan portfolio grew 3.1 per cent YoY to ₹25,904 crore as of September 2025. Sequentially, it declined from ₹26,055 crore as of June 2025.