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CreditAccess Grameen reported a strong Q1FY27 performance

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: CreditAccess Grameen reported a strong Q1FY27 performance, driven by healthy business growth, continued improvement in asset quality and robust profitability. AUM grew 2.5% QoQ (16.4% YoY) to ₹30,319 crore, while disbursements increased 11.9% YoY to ₹6,107 crore despite seasonal softness. Lower interest reversals and stable funding costs supported a 20 bps QoQ expansion in NIM to 14.4%. Credit cost moderated sharply to 0.72%, driving RoA improvement to 5.9%, while asset quality strengthened with PAR90+ declining to 1.46% and monthly PAR15+ accretion remaining at a normalized ~15–20 bps. Retail Finance continued to scale up, with its share increasing to 20.6% of AUM, supported by the graduation of high-vintage MFI customers

View: Healthy borrower acquisition, rising contribution from Retail Finance and continued execution of Project Shakti provide visibility on sustained growth over the medium term. Continued portfolio normalization and disciplined underwriting are expected to keep credit costs benign, while calibrated pricing actions should support sustainable earnings.

Impact: Positive

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