CreditAccess Grameen shares slide as Q4 profit falls 88%; details here

CreditAccess Grameen's stock fell as much as 5.95 per cent after the lender posted an 88 per cent fall in its Q4 profit.

Shares of CreditAccess Grameen tumbled nearly 6 per cent on Monday after the microfinance lender's net profit in the fourth quarter of the previous fiscal (Q4FY25) fell 88.1 per cent year-on-year (Y-o-Y) to ₹47.2 crore. 

 

CreditAccess Grameen’s stock fell as much as 5.95 per cent during the day to ₹1,133 per share, the worst intraday session since May 6 this year. The stock pared losses to trade 5.3 per cent lower at ₹1,141 apiece, compared to a 0.08 per cent advance in Nifty 50 as of 10:12 AM. 

 

Shares of the company ended a five-day rally on Monday. The stock has risen 27 per cent this year, compared to a 5.7 per cent fall in the benchmark Nifty 50. CreditAccess Grameen has a total market capitalisation of ₹18,048.32 crore.  Catch Stock Market Updates Today LIVE 

 

CreditAccess Grameen Q4 results 

The microfinance lender reported an 88.1 per cent YoY decline in net profit to ₹47.2 crore for the quarter ended March 2025 (Q4FY25). The decline in the bottom line was driven by conservative provisioning and accelerated write-offs.

 

For the full financial year FY25, the company’s net profit rose 63.2 per cent YoY to ₹531.4 crore. The lender's net interest income (NII) declined 5.0 per cent to ₹876.1 crore in Q4FY25. Its net interest margin dropped to 12.7 per cent from 13.1 per cent in Q4FY24.

 

The microfinance lender’s gross loan portfolio declined by 2.9 per cent YoY to ₹25,948 crore as of March 2025. 

CreditAccess Grameen asset quality 

The total write-off for the fourth quarter stood at ₹518.2 crore, which included ₹479.2 crore in accelerated write-offs. This led to an additional credit cost of ₹150.7 crore. Gross non-performing assets (NPAs) rose sharply to 4.76 per cent as of March 2025, compared to 1.18 per cent a year earlier.

Management commentary post Q4 results 

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, said Ganesh Narayanan, Chief Executive Officer of CreditAccess Grameen.

 

Udaya Kumar Hebbar, Managing Director of the company, said the continued effort to address ground-level challenges, reduce customer leverage, and expand the on-ground workforce has significantly improved customer engagement. 

About CreditAccess Grameen

CreditAccess Grameen is a microfinance institution based in Bengaluru, Karnataka. It offers microloans to women customers predominantly in rural areas across India. The company operates across 422 districts in 16 states and one union territory through 2,059 branches. The company’s promoter is CreditAccess India BV, a multinational company specialising in micro and small enterprise financing.