MFI CreditAccess Grameen Q1 net profit down 85% on higher provisions

Don't want to miss the best from Business Standard?

Microfinance lender CreditAccess Grameen’s net profit declined 85 per cent year-on-year (Y-o-Y) to ₹60.2 crore for the quarter ended June 2025 (Q1FY26), owing to contraction in net interest income and higher provisioning. Sequentially, the net profit rose 27.5 per cent from Rs 47.2 crore in the quarter ended March 2025 (Q4FY25).

 

The shares closed 1.03 per cent higher at ₹1,280.20 per share on the BSE. In an exchange filing, the company said its net interest income (NII) declined 1.6 per cent to ₹937 crore. Sequentially, NII grew 7 per cent from ₹876.1 crore in Q4FY25. Its net interest margin (NIM) dropped to 12.8 per cent in Q1FY26 from 13.0 per cent in Q1FY25. However, it improved from 12.7 per cent in Q4FY25. 

 

Bengaluru-based microfinance lender's total writeoff stood at ₹692.5crore in, including ₹603.2 crore in accelerated writeoffs, resulting in an additional credit cost of ₹192.8 crore. Gross non-performing assets (NPAs) rose sharply to 4.70 per cent as of June 2025, up from 1.46 per cent a year ago. It, however, declined from 4.76 per cent at the end of March 2025.

 

The microfinance lender’s gross loan portfolio declined by 0.9 per cent Y-o-Y to ₹26,055 crore as of June 2025. Sequentially, it rose from ₹25,948 crore as of March 2025.

 

The outlook for FY26 remains encouraging, with favorable monsoon forecasts and strengthening rural sentiment, laying the groundwork for sectoral revival, said Ganesh Narayanan, chief executive officer of CreditAccess Grameen.