This Microfinance company, which deals in providing microfinance services to women who are enrolled as members and organized as Joint Liability Groups, surged upto 11 percent after it reports over 1.5 lakh new borrowers & Improved Business.
Share Price Movement
In Thursday’s trading session, CreditAccess Grameen Ltd‘s share price was up by 11.06 percent and touched a day’s high of Rs. 1,022.45. The stock reiterated from the day’s high and was trading at Rs. 1,008.05 per share, which is 9.50 percent higher than the previous close of Rs. 920.60 per share.
The share price in the past year has given negative returns of 27 percent and has underperformed the Nifty Index in the same period.
What Happened
The company’s stock was in focus after its exchange filing revealed additions over 1.5 lakh borrowers during Jan and Feb 2025, with Gross Loan Portfolio (GLP) of Rs. 25,395 crore.
For February month, the Portfolio at Risk (PAR) overall for 90+ days was 3.4 percent in Feb ‘25, which rose from 2.6 percent in Dec ‘24 (Inc. Karnataka).
The collection efficiency (Excl. Karnataka) was more than 99.5 percent in Feb ‘25. The collection efficiency for Karnataka had dipped from ~99.4 percent to 95.1 percent in early February and further improved to 98 percent by the end of February ‘25.
Collection Efficiency in MFI measures the percentage of dues successfully collected from borrowers compared to the total dues outstanding.
As per Business update, it mentioned that declining PAR accretion rate across all states stabilized asset quality, partially offset by higher accretion in Karnataka.
Earlier, Goldman Sachs, a prominent investment bank, had said due to the Karnataka MFI Ordinance, they had indicated a sharp drop in collection efficiency and they expected CreditAccess to be affected the most.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 7.4 percent increase in net interest income, reaching Rs. 861.7 crore compared to Rs. 802.4 crore in Q3FY24.
During the same period, the company turned from a net profit of Rs.353.3 crore in Q3FY24 to a net loss of Rs. 99.5 crore in Q3FY25.
Company Profile
CreditAccess Grameen Limited (CA Grameen) is an Indian microfinance institution based in Bengaluru. It primarily provides microloans to women in rural areas, empowering low-income households. Established in 1999, CA Grameen operates across 388 districts and has nearly 2,000 branches, focusing on community-based lending through Joint Liability Groups.
Written by – Santhosh S
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