Company Overview

CreditAccess Grameen Limited, an RBI-registered NBFC-Micro Finance Institution (NBFC-MFI) classified under NBFC-ML, reported strong financial performance for FY26 with significant growth across key metrics. The company filed its Integrated Annual Report 2025-26 under SEBI Regulations 34 and 53, along with detailed standalone and consolidated financial statements.

Financial Performance Highlights

Profitability & Growth:

  • Standalone net profit surged 46% YoY to ₹777.64 crore (₹531.40 crore in FY25)
  • Total income reached ₹6,062.54 crore with interest income of ₹5,762.64 crore
  • Gross AUM grew 14.04% YoY to ₹295.90 billion (₹29,038.31 crore)
  • Basic EPS improved to ₹48.63 from ₹33.32 in FY25
  • Return on Assets stood at 2.66% and Return on Equity at 10.67%

Asset Quality & Provisions:

  • Maintained strong asset quality with Gross NPA at 3.17% and Net NPA at 1.12%
  • ECL impairment provisions of ₹1,115.58 crore with loan write-offs of ₹1,968.45 crore during FY26
  • Stage 3 (NPA) loans totaled ₹922.25 crore (3.18% of portfolio)
  • Capital Adequacy Ratio remained robust at 24.41% (Tier I: 23.63%, Tier II: 0.78%)

Operational Metrics & Business Update

Customer & Branch Network:

  • Served 4.42 million active borrowers (99.97% women) with 85% customer retention rate
  • Operated through 2,236 branches across 451 districts in 16 states and 1 union territory
  • Employed 21,941 staff with 20.89% women workforce

Digital Transformation:

  • Onboarded 0.98 million new customers digitally through Grameen Mahi Platform
  • Implemented R-25 Core Financial Services System from Temenos
  • Automated 175 processes through Robotic Process Automation
  • Established AI Innovation Hub for GenAI-based initiatives including chatbots
  • Cashless collections reached ₹42,841.13 million (19.5% of total collections)

Funding & Capital Structure

Capital Raising & Debt Management:

  • Raised ₹157,864.59 million in debt capital during FY26
  • Secured over USD 300 million through foreign borrowings (ECB)
  • Foreign borrowings constituted 24.4% of total funding
  • Maintained diversified lender base of 76 entities (44 commercial banks, 24 foreign lenders)
  • Debt/Equity ratio stood at 3.01
  • Liquidity coverage ratio maintained at 202.34%

Regulatory & Compliance Matters

Audit & Qualifications:

  • Received unmodified audit opinion from Walker Chandiok & Co LLP and Varma & Varma
  • Key audit matters focused on ECL impairment modeling and IT system controls
  • Qualification noted regarding incomplete audit trail functionality at database level for certain accounting software systems

Tax & Legal Developments:

  • Received favorable income tax order from NFAC deleting ₹46.02 crore demand for AY 2022-23
  • Income Tax department has appealed to ITAT against the NFAC order
  • Company assesses probability of liability as remote, no provision made

Fraud & Covenant Management:

  • Identified employee fraud cases aggregating ₹1.27 crore, recovered ₹0.21 crore
  • Obtained waivers from lenders for borrowing covenant breaches during the year

ESG & Social Impact

Ratings & Certifications:

  • Maintained AA-/Stable credit ratings from CRISIL, ICRA, and Ind-Ra
  • Achieved Sustainalytics ESG Risk Rating of 20.7 (Medium Risk) and S&P Global ESG Score of 53/100
  • Received Gold Level Client Protection certification from M-CRIL and Comprehensive MFI Grading of M1C1

CSR Initiatives:

  • Spent ₹251.53 million on CSR supporting 392,518 beneficiaries
  • Focus areas included education (258,844 beneficiaries), healthcare (cancer screening for 8,000+, HPV vaccination for 4,960 girls), livelihood support, and rural infrastructure

Environmental Performance:

  • GHG emissions: 3,032,938 tCO2 e (Scope 1,2,3)
  • Energy consumption: 25,497 GJ
  • Water consumption: 156,114 KL
  • Waste generated: 5.54 metric tonnes

Governance & Management

Board Composition:

  • 8 Directors including 3 Independent Directors (2 Women Directors)
  • Held 8 board meetings during FY26 with 9 active committees
  • Key appointments: Mr. Ganesh Narayanan as MD & CEO (August 2025), Mr. Manoj Kumar as Chairman (October 2025)

Employee Benefits:

  • ESOP expense: ₹25.66 crore with 476,409 shares allotted to employees
  • Implemented new labour codes resulting in incremental provisions of ₹18.33 crore (Gratuity: ₹13.53 crore, Long-term absences: ₹4.80 crore)
  • Gratuity liability: ₹26.94 crore; Leave encashment liability: ₹48.85 crore

Risk Management Framework

Maintained comprehensive risk management covering credit risk, operational risk, market risk, liquidity risk, and ESG risk. Key measures included climate risk assessment, cybersecurity protocols, portfolio quality monitoring through early warning systems, and ALM management with stress testing. Hedged foreign currency exposure through cross currency interest rate swaps with notional value of ₹5,561.37 crore.

Forward-looking Statements

The report contains forward-looking statements regarding expected financial position, business plans, and prospects, dependent on underlying assumptions that management believes are reasonable, though actual results could differ materially.