Shares of CreditAccess Grameen Ltd surged 7.42% to ₹988.50 in early trading on Wednesday after the company released its interim business update for February 2025. The update highlighted strong loan portfolio growth, an expanding borrower base, and stabilizing asset quality, despite temporary challenges in Karnataka.
Key Highlights of February 2025 Business Update
The Gross Loan Portfolio (GLP) stood at ₹25,395 crore, rising from ₹24,810 crore in December 2024. The Karnataka portfolio increased to ₹8,010 crore, up from ₹7,927 crore, while loan growth in other states climbed to ₹17,384 crore, compared to ₹16,883 crore in December 2024. The company added over 1.5 lakh new borrowers in January-February 2025.
In terms of collections, the company reported collection efficiency of over 99.5% (excluding Karnataka) in February 2025. In Karnataka, where regulatory uncertainties had impacted repayment cycles, the collection efficiency improved from 95.1% in early February to 98.0% by the month-end.
Asset Quality Trends
While the Portfolio at Risk (PAR) 0+ ratio increased to 7.5% in February from 6.8% in December 2024, and the PAR 90+ ratio rose to 3.4% from 2.6%, the company remained optimistic about asset quality stabilization. The rise in delinquencies was primarily due to temporary disruptions caused by a Karnataka ordinance, but gradual improvement was noted post-policy clarity.
Impact of the Karnataka Ordinance
The Karnataka ordinance, effective February 12, 2025, targeting unregistered lenders, led to temporary repayment delays. However, as regulatory clarifications were issued, repayments resumed, improving efficiency and stabilizing asset quality.
Despite these short-term challenges, CreditAccess Grameen remains confident about sustaining growth, backed by continuous collection efforts and borrower engagement strategies. The company’s robust fundamentals and strategic focus on portfolio diversification continue to support its long-term business outlook.