Goldman Sachs on CreditAccess Grameen: Maintains ‘Sell’ rating with target price of ₹577

Goldman Sachs continues to recommend a ‘Sell’ on CreditAccess Grameen, setting a target price of ₹577. Their analysis indicates that 37% of microfinance borrowers with retail loan overlaps—totaling 12.3 million individuals—are delinquent on either microfinance or retail loans, or both. This delinquency encompasses $18 billion in retail loans and $10 billion in microfinance loans.

Furthermore, slippages in retail products (loans overdue by 91-180 days) have increased by 120 basis points since March 2024, reaching 4.3%. Despite some lenders reporting stabilized collection efficiency, Goldman Sachs finds no encouraging signs of recovery in the microfinance sector, posing ongoing challenges for CreditAccess Grameen.