CreditAccess Grameen share price hit 52-wk low on weak Q2 disbursements

The fall in CreditAccess Grameen share price came after the company's disbursements dropped 19% annually to Rs 4,004 cr in Q2FY25, from Rs 4,966 crore in Q2FY24.

CreditAccess Grameen share price: Microfinance company CreditAccess Grameen share price fell up to 2.71 per cent to hit a fresh 52-week low of Rs 1,122.20 per share on Thursday, October 10, 2024.

The fall in CreditAccess Grameen share price came after the company’s disbursements dropped 19 per cent year-on-year (Y-o-Y) to Rs 4,004 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 4,966 crore in the September quarter of financial year 2024 (Q2FY24). 

Disbursements fell 11 per cent quarter-on-quarter (Q-o-Q), decreasing from 4,476 crore in the June quarter of financial year 2025 (Q1FY25).

Moreover, the company's asset quality deteriorated, with the PAR 30+ increasing to 3.3 per cent in Q2FY25, from 1.8 per cent in Q1FY25.

PAR30 is a crucial measure of a financial institution's credit risk, along with the restructured ratio and the write-off ratio. Funders typically prefer to finance microfinance institutions (MFIs) with a PAR30 below 10 per cent and a write-off ratio under 5 per cent. If an MFI fails to meet these criteria, funders may opt to offer technical assistance grants instead of direct financing.

On the bright side, asset under management (AUM) rose 12 per cent annually to Rs 25,133 crore in Q2FY25, from Rs 22,248 crore in Q1FY25.

Collection efficiency jumped to 96.2 per cent in the September quarter of FY25, from 97.9 per cent in the June quarter of FY25.

Additionally, the Capital Adequacy Ratio also known as Capital to Risk Assets Ratio (CRAR) rose to 26.4 per cent in Q2FY25, from 25.2 per cent in Q1FY25.

CreditAccess Grameen Limited is a non-deposit accepting NBFC-microfinance institution (MFI) registered with the Reserve Bank of India (RBI), dedicated to providing microfinance services primarily to women organised into Joint Liability Groups. 

By leveraging its distribution channels, the company also offers a range of financial products and services tailored for its members.

As India’s largest NBFC-Microfinance Institution, CreditAccess Grameen boasted a gross loan portfolio of approximately Rs 26,700 crore in FY24, capturing a 6 per cent  share of the microfinance market. 

The institution serves about 4.9 million active borrowers, with around 84 per cent of them from rural areas, and has strengthened its asset quality through effective customer engagement and a dedicated management team.

At 1:30 PM, shares of CreditAccess Grameen were trading 2.66 per cent lower at Rs 1,122.90 per share. In comparison, BSE Sensex was trading 0.29 per cent higher at 81,699.91 levels.