CreditAccess Grameen Q2FY26 Concall Decoded: “Write-offs, Rains, and Rural Resilience”
1. Opening Hook
When the CEO opens with “Healthy monsoons and strong rural demand,” you know the story’s about rain, not revenue. ☔️ Yet, somehow, CreditAccess Grameen turned floodwater into liquidity — almost poetic. The quarter wasn’t a fairy tale: ₹683 crore written off, floods in Maharashtra, and credit costs marching like inflation in election season. But management swears this is “the cleanup before the climb.” Rural India’s favorite micro-lender seems ready for its next growth spurt — provided the weather gods cooperate.
(Keep reading — the credit-cost plot twist gets deliciously complex.)
2. At a Glance
Disbursement ₹5,322 Cr (+33% YoY): Growth engine back from monsoon leave.
PAT ₹126 Cr (Flat QoQ): Profit took a chai break amid cleanup chaos.
GNPA 3.65%, NNPA 1.26%: Still under control — barely.
Credit Cost 5.2% (Incl. write-offs): CFO called it “accelerated hygiene.” We call it Febreze for the loan book.
“We wrote off ₹683 crore, including ₹554 crore accelerated write-offs to clean up legacy stress.” (Translation: We Marie Kondo’d the bad loans — they no longer spark joy.)
“Retail Finance now forms 11.1% of AUM, up from 6.8%. Growth is well-calibrated.” (Translation: We’re diversifying, not panicking.)
“Credit cost deviation of 70–100 bps expected in FY26, 4–4.5% range in FY27 due to ECL refresh.” (Translation: Blame the model, not the management.)
“We raised ₹3,519 crore; cost of borrowing down 11 bps to 9.6%.” (Translation: Bankers still pick our calls.) 📞
“Employee base at 21,701; attrition 28.9%.” (Translation: Microfinance may be noble, but not everyone’s staying for sainthood.)
“ROA will stay within 4–4.5% even with higher credit costs.” (Translation: Believe in our math… we do, most days.)
