CreditAccess Grameen Shares Dip Despite 33% Loan Growth in Q2

Shares of CreditAccess Grameen Limited fell in Tuesday’s trade, even as the company posted a 33% year-on-year rise in loan disbursements for the September quarter. Despite healthy growth in lending activity, investors appeared cautious amid concerns over asset quality and temporary weather-related disruptions.

Strong Loan Growth Amid Seasonal Weakness

CreditAccess Grameen reported continued business momentum during the September quarter, traditionally considered a slower period for microfinance activity. The company’s total disbursements grew 33% compared to the same period last year and were up 27% in the first half of FY26. However, on a sequential basis, disbursements dipped 2.3%, reflecting normal seasonality in rural credit demand.

The company also expanded its reach by opening 150 new branches in the first half of FY26, including 96 during the September quarter. Additionally, CreditAccess Grameen added 4.4 lakh new borrowers in the first six months, with 2.2 lakh added between July and September, underscoring steady demand in rural and semi-urban markets.

Weather Disruptions Affect Portfolio Quality

While disbursement growth remained robust, CreditAccess Grameen flagged a temporary rise in its portfolio-at-risk (PAR) metrics due to heavy rains and floods across several operating geographies. The PAR 15+ accretion rate measures the pace at which loans become overdue by more than 15 days.

The company’s total PAR 15+ ratio stood at 0.46% in September, up from 0.34% in June. In key states such as Madhya Pradesh, this ratio increased to 0.7% from 0.34%, indicating localised stress caused by weather disruptions. The management expects these metrics to normalise in the coming months as repayment activity stabilises.

CreditAccess Grameen Share Price Details

Despite the operational growth, CreditAccess Grameen share price edged lower by 1.29% to ₹1,381.30 at 2:16 PM IST on October 07, 2025. The stock recorded a day’s high of ₹1,431 and a low of ₹1,375, with a market capitalisation of ₹22,126 crore. 

The company’s financial metrics indicate a price-to-earnings (P/E) ratio of 114, return on capital employed (ROCE) of 9.55%, and return on equity (ROE) of 7.86%.

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Conclusion

While CreditAccess Grameen’s second-quarter performance shows consistent growth in disbursements and borrower base, near-term concerns around asset quality and weather-related disruptions appear to have weighed on investor sentiment. 

However, as repayment cycles normalise and rural credit demand strengthens in the second half of FY26, the company’s performance might stabilise.

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