MFI CreditAccess reports rise in stress in Q2; collection efficiency dips

Reflecting pressure on asset quality, BSE-listed microfinance lender CreditAccess Grameen Ltd’s overdues across buckets rose in the quarter ended September 2024 compared to the quarter ended June 2024.

The portfolio at risk (PAR), i.e., loans where payments were overdue, for at least 30 days rose to 3.3 per cent in September 2024 (Q2 FY25) from 1.8 per cent in June (Q1 FY25). PAR for the 60-plus days bucket rose to 2.4 per cent in Q2 from 1.4 per cent in Q1, and for the 90-plus days bucket, it increased to 1.7 per cent from 1.1 per cent, according to a filing with BSE. Its stock closed 2.96 per cent lower at Rs 1,119.4 per share.

The collection efficiency, including arrears, declined to 96.2 per cent in Q2 FY25 from 97.9 per cent in Q1 FY25.

Its loan disbursements were down 11 per cent quarter-on-quarter (Q-o-Q) from Rs 4,476 crore in Q1 FY25 to Rs 4,004 crore in Q2 FY25. They were down 19 per cent year-on-year (Y-o-Y) from Rs 4,966 crore in Q2 FY24.
 

Its assets under management (AUM) shrunk by four per cent Q-o-Q to Rs 25,133 crore in September 2024 from Rs 26,304 crore. However, AUM rose 12 per cent Y-o-Y from Rs 22,248 crore, the filing showed.