 "The volume of loan disbursals by FACE member companies rose 21.3 per cent to 56.4 million loans in the first half of FY25 (H1FY25), up from 46.5 million in H1FY24, data shows. Disbursals were also higher by 9.5 per cent, rising from 51.5 million in H")
CreditAccess Grameen Ltd, which is facing the brunt of stress in the microfinance portfolio, plans to increase the share of overall retail finance, comprising both unsecured and secured, to up to 15 per cent by the financial year 2027-28 (FY28), from about six per cent at the end of FY25.
Incrementally, the growth in microfinance will slow down and retail will catch up. The share of non-microfinance would be anywhere between 12-15 per cent around 2028, the company executives said in the post-result (FY25) analyst call.
The microfinance lender’s gross loan portfolio (GLP) declined by 2.9 per cent year-on-year (Y-o-Y) to ₹25,948 crore as of March 2025. Out of this, the retail finance book was ₹1,543 crore, which is about six per cent of GLP at the end of March 2025. The retail finance loan book comprises a mix of unsecured personal loans and secured credit like housing finance.
The company in its statement post results had said considering the evolving business environment, the company is targeting loan portfolio growth of 14–18 per cent in FY26. Of this, growth in the microfinance segment will be 8–12 per cent, with the remainder coming from retail finance.
Within retail books, the share of unsecured advances was around 75 per cent and secured 25 per cent now. Over the next couple of years, the aim is to take it to around 50-50 per cent. In the secured book, largely it will be business loans, affordable housing loans and two-wheeler loans, officials said.
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The individual loans will be given to existing customers. Even in the secured book, business loans and affordable housing loans, around 60 per cent would be to existing and 40 per cent new. So, across a larger portion of the retail finance, the company will not have any sourcing cost. This will help to keep costs under control to remain competitive, they added.
The company’s net profit declined by 63.2 per cent year-on-year (Y-o-Y) to ₹531.4 crore in FY25. The provision bill for impaired assets swelled to ₹1,929 crore in FY25 from ₹451 crore in FY24. Gross non-performing assets (NPAs) rose sharply to 4.76 per cent as of March 2025, up from 1.18 per cent a year ago.
