CreditAccess Grameen reported a strong Q3 FY26, driven by normalizing asset quality trends and renewed growth focus. The company witnessed a significant improvement in collection efficiency, reaching 99.71% in December 2025. Disbursements increased by 13.4% YoY to INR 5,767 Crore, while portfolio growth reached INR 26,566 Crore. The company added 2.1 Lakh new borrowers in Q3 FY26, demonstrating robust business momentum.
Key Financial Highlights
CreditAccess Grameen reported robust financial results for Q3 FY26, demonstrating a strong and stable business model. Key highlights include:
- Disbursements of INR 5,767 Crore, a 13.4% YoY increase.
- Portfolio growth of 2.6% to INR 26,566 Crore (or 3.3% QoQ adjusted for accelerated write-offs).
- Addition of 2.1 Lakh new borrowers during the quarter.
- Net Interest Income growth of 13.4% YoY to INR 977 Crore.
- Portfolio yield of 21.0%.
- 60 bps QoQ increase in NIM to 13.9%.
- Doubling of PAT QoQ to INR 252 Crore.
Asset Quality Improvement
The company highlighted a clear normalization of asset quality trends across operating geographies, enabling a renewed focus on growth:
- X bucket collection efficiency stood at 99.71% in December 2025.
- Monthly PAR 15+ accretion sharply declined to 18 bps in December 2025 from 47 bps in September 2025.
- GLP of borrowers with > 3 lenders stood at 4.9% in December 2025 versus 25.3% in August 2024.
Retail Finance Expansion
The retail finance portfolio continued its steady growth, now representing 14.1% of AUM, up from 11.1% in Q2 FY26. This growth reflects a strategic shift towards providing individual business loans to quality customers.
Strategic Initiatives and Outlook
CreditAccess Grameen is focused on strengthening its digital capabilities and expanding its customer base. The company’s digital handle, Grameen Mahi, has seen close to 1 million downloads, contributing to 20% digital collections by the end of December 2025.
Looking ahead, the company aims for a robust business growth trajectory with improving return ratios. They are targeting a medium-term growth rate of microfinance in the early teens, with the remainder of the growth coming from retail finance. FY27 credit cost guidance is projected to be 4% to 4.5%, contingent on maintaining a monthly PAR 15+ accretion rate.
Cost of Borrowings
The average cost of borrowings continues to trend lower, reflecting disciplined liability management, having declined 26 bps QoQ to 9.4% at the end of Q3 FY26. The company raised INR 3,917 Crore in Q3 FY26 with a marginal cost of borrowing of 8.9%.
Source: BSE
