Q3 2025 CreditAccess Grameen Ltd Earnings Call Transcript
Key Points
- CreditAccess Grameen Ltd (NSE:CREDITACC) reported a significant improvement in delinquency trends, with new delinquency addition rates slowing down across various geographies since mid-November 2024.
- The company experienced a rebound in AUM growth in December after eight months of contraction, indicating a positive shift in business momentum.
- Retail Financial division saw substantial growth, with disbursement increasing by 51% quarter-on-quarter, reflecting the company's ability to deliver tailored solutions.
- The company maintained a healthy liquidity position with cash and cash equivalents of INR3,222 crore, amounting to 11.7% of the total assets.
- CreditAccess Grameen Ltd (NSE:CREDITACC) has strategic partnerships with six international DFIs, which are crucial in diversifying funding sources and providing access to long-term cost-effective capital.
- The company faced a transient increase in delinquency trends due to various external factors, including heavy rain and cyclones, impacting asset quality.
- Credit costs were elevated, with the company taking an accelerated write-off of INR229 crore this quarter, resulting in an additional credit cost of INR73 crore.
- Net interest margin (NIM) slightly declined to 12.5% for Q3 FY25 due to interest reversal of INR75 crore.
- The company experienced a decline in AUM quarter-on-quarter due to accelerated write-offs, despite year-on-year growth.
- There were concerns about loan officer attrition, although the company reported it was lower than the industry average of 50%.
Ladies and gentlemen, good day, and welcome to the Q3 FY25 results conference call of CreditAccess Grameen hosted by HDFC Securities Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Krishnan ASV from HDFC Securities Limited. Thank you, and over to you, sir.
Yeah hi, good evening, everyone, and welcome to the CreditAccess Grameen Q3 FY25 Earnings Call. On behalf of HDFC Securities, I'm Krishnan ASC. And I'd like CreditAccess Grameen management team for giving us this opportunity to host the call. Today, we have with us the senior management team of CreditAccess Grameen represented by Mr. Udaya Kumar Hebbar, the MD; Mr. Ganesh Narayanan, the CEO; and Mr. Nilesh Dalvi, the CFO.
Without further ado, I'll now hand over the call to Mr. Udaya Kumar Hebbar for his opening remarks, and then we'll open up the floor for Q&A. Over to you, sir.
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