CREDITACCESS GRAMEEN

“Ideally, we would like to publish more than 1 Lakh customers every month, and that's the target that we are working on. We are right now around 80,000 customers per month.”

“It should be similar in my view. But we may have to probably guide this towards Q4.”

“Of the ~45 Lakh borrower base, 15% or 6.8 Lakh borrowers belong to Retail Finance.”

“Retail Finance AUM grew to INR 7,200 Crore, now 23.3% of the total AUM, up from 20.6% in Q1 FY27.”

“Within this, our secured book comprising of Secured Business Loans, Affordable Housing Loans and 2-Wheeler Loans grew 60.9% YoY to INR 695 Crore.”

“Our mortgage presence now spans across 300 GL and 128 Retail Finance branches with 2-wheeler loans offered through 950-plus Group Loan branches.”

“Our 2-Wheeler Loan book witnessed strong traction, having crossed INR 60 Crore compared to INR 20 Crore in Q1.”

“New customer acquisition will be a key growth driver with momentum expected to accelerate in H2.”

“So what we have seen through the cycle, we can see that banks have significantly pulled back and MFIs have garnered better market share.”

“the only reason probably growth is a little not visible is because of liquidity aspects to smaller NBFCs. The large ones continue to do normal business.”

“Right now, what we are seeing is that it is stable at around 10-12% of our customers on a consistent basis.”

“I don't think banks have vacated at this space. They slowed down. But I feel all of this is temporary.”

“Commenting on our margins, we saw our NIM expand to 15.1% in Q2 from 14.4% in Q1, driven by lower interest reversals in Group Loan book, higher yielding individual loan book, stable cost of borrowing and higher capital push.”

“Our cost-to-income ratio improved to 28.2% and PPOP grew 39.6% YoY and 11.2% QoQ to INR 970 Crore in Q2 FY27.”

“We have earlier also indicated we will do a 50-bps cut this quarter and probably 50-bps in the next quarter.”

“If, for example, if the cost of borrowing goes up in next quarter, we have the right to reprice or not necessarily pass back the 50 bps that is planned for the next quarter also.”

“Now the subsequent rating, lending rate decisions will depend upon how the credit cost is evolving and how the borrowing cost is evolving. There is no compulsion that we have to pass on.”

“Our marginal cost of borrowing stood at 9.1% in Q2 FY27, while average cost of borrowing was stable at 9.1%.”

“Our capital position strengthened further with our capital adequacy at 26.9%, Tier 1 at 26.2% and total equity base of INR 8,919 Crore.”

“So firstly, on the borrowing cost, we do have borrowings from a wide range of lenders. So there are more than 80 lending institutions.”

“But it will also replace the USD 200 million ECB, which is going to expire in the same month. And the new ECB what we have taken is at a lower rate compared to the previous ECB which is getting replaced.”

“While we do have certain repo-linked exposures, but around 30% of our borrowings are fixed. 40% are linked to MCLR and balance 30% are linked to the loans which are linked to repo, they reprice at different points in time.”

“We signed USD 175 million ECB loan in October, syndicated by Standard Chartered Bank and DBS Bank.”

“We also mobilized INR 940 Crore of domestic NCDs through private placement process in this financial year.”

“ECBs and NCDs help us both in liability diversification as well as securing longer tenure of funding to strengthen our ALM.”

“See, as you know, currently, the promoters are in active discussion for a strategic investor as the whole group. That is where it is. And we should see some progress in the next couple of quarters.”

“No, not at our level.”

“Most of the INR 614 Crore portfolio written-off in H1 FY27 consisted of Group Loans.”

“Second is that we wrote-off 3 Lakh customers in past 12 months.”

“Commenting on our asset quality, we saw a temporary increase in monthly PAR accretion rate during August and September, driven by excess rainfall and flooding in certain regions of Bihar, UP, Chhattisgarh and Madhya Pradesh, along with seasonal festivities in a few geographies.”

“We are seeing a few signs of drought-related challenges in October around certain pockets of Maharashtra, wherein the borrowers are requesting for additional time for repayment, including restructuring options.”

“Renish right now our expectation is that in Q3, it should probably inch up a little more. However, on an overall year basis, we still believe that we are significantly positioned to be within the guided range.”

“Historically, our data at least indicates that we've not had any significant impact because of drought. But now this year, we'll have to watch out because it's very widespread.”

“So there, probably we will not focus on sourcing new customers. We will focus on only our existing customers with respect to business.”

“We reported our highest quarterly profit of INR 502 Crore in this quarter, having grown fivefold over the past 5 years.”

“Current financial year marks a clear turnaround, recording INR 995 Crore PAT in the first half as against INR 778 Crore PAT during the previous financial year.”

“Our H1 ROA stood at 5.9% and ROE stood at 23.8%.”

“Our AUM grew 19.5% YoY and 2.1% QoQ to INR 30,946 Crore.”

“Disbursements stood at INR 6,355 Crore, up 19.4% YoY and 4.1% QoQ, taking H1 disbursements to INR 12,461 Crore.”