Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q3 FY25 Earnings Presentation
47 slides from Creditaccess Grameen's earnings presentation, January 2025
Slide 1: CreditAccess Grameen Limited Q3 & 9M FY25 Investor Presentation
CreditAccess Grameen Limited Q3 & 9M FY25 Investor Presentation January 2025 www.creditaccessgrameen.in
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price-sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 3: Discussion Summary
Discussion Summary Key Performance Highlights Asset Quality & Business Overview Financial Results Overview Liability Strategy Investment Rationale www.creditaccessgrameen.in 3
Slide 4: Q3 & 9M FY25: Key Business Highlights
Q3 & 9M FY25: Key Business Highlights Key Operational Metrics Q3 FY25 YoY% QoQ% Sustained reversal in PAR accretion rate beginning mid Nov-24 GLP (INR Cr) 1 24,810 +6.1% -1.3% Improved business momentum beginning Dec-24 Borrowers (Lakh) 48.05 +2.4% -2.6% ✓ 1.52 Lakh new customers added in Q3, 42% be
Slide 5: Discussion Summary
Discussion Summary Key Performance Highlights Asset Quality & Business Overview Financial Results Overview Liability Strategy Investment Rationale www.creditaccessgrameen.in 5
Slide 6: Sustained Reversal In PAR Accretion Rate Beginning Mid Nov-24 (1/2)
Sustained Reversal In PAR Accretion Rate Beginning Mid Nov-24 (1/2) All States – Monthly PAR 15+ Accretion/AUM Rate Karnataka – Monthly PAR 15+ Accretion/AUM Rate 1.34% 1.21% 0.95% 1.01% 0.91% 0.84% 0.76% 0.50% 1.25% 0.68% 0.72% 0.41% 1.14% 0.62% 0.32% 0.20% 0.88% 0.83% 0.42% 0.74% 0.65% 0.33% 0.46%
Slide 7: Sustained Reversal In PAR Accretion Rate Beginning Mid Nov-24 (2/2)
Sustained Reversal In PAR Accretion Rate Beginning Mid Nov-24 (2/2) Tamil Nadu – Monthly PAR 15+ Accretion/AUM Rate • While Tamil Nadu has been showing an improving trend, the 1.68% 1.64% minor increase of PAR 15+ is due to lagged impact of heavy 1.49% 1.45% rains/cyclones in Nov-24/ Dec-24 and high
Slide 8: Improved Business Momentum Beginning Dec-24
Improved Business Momentum Beginning Dec-24 71,708 67,011 67,220 72,028 55,378 49,873 Improved Business Momentum: New Borrower 43,023 42,438 45,283 43,976 Addition Rate • Disbursements regained pace in Dec-24/ Jan-25 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 20-Jan-25 • New borr
Slide 9: Continued Customer Addition & High Retention Despite Prevailing Challenges
Continued Customer Addition & High Retention Despite Prevailing Challenges Continued Borrower Addition High Borrower Vintage Borrowers (‘000) Q3 FY25 57% 21% 23% Q2 FY25 58% 21% 21% 199 Q1 FY25 58% 24% 18% 909 598 Q4 FY24 57% 25% 18% 4,693 4,805 Q3 FY24 56% 27% 17% Q3 FY24 Addition Write-off Attriti
Slide 10: Significant Borrower Deleveraging Has Already Been Achieved
Significant Borrower Deleveraging Has Already Been Achieved GLP % - Dec-24 Borrower Vintage with CA Grameen GLP % - Dec-24 Borrower Vintage with CA Grameen Key Highlights: 0-2 2-4 4-6 >6 Total Unsecured 0-2 2-4 4-6 >6 Dec-24 vs. Aug-24 Lender Overlap Total % Total % years years years years Indebtedn
Slide 11: Delinquencies Due To Tighter Underwriting Have Largely Been Realized
Delinquencies Due To Tighter Underwriting Have Largely Been Realized Understanding PAR Impact: PAR 15+ Dec-24 Borrower Vintage with CA Grameen Key Highlights: Breakup of PAR 15+ of 6.3%: 0-2 2-4 4-6 >6 Dec-24 vs. Sep-24 Lender Overlap Total % • Unique Borrowers: 0.9% years years years years Unique 3
Slide 12: Limited Impact Of MFIN Guardrails On Customer Retention & Future Growth
Limited Impact Of MFIN Guardrails On Customer Retention & Future Growth No Major Impact of MFIN Guardrails: [CA Grameen + 3] Borrowers [CA Grameen + 4 & above] Borrowers Borrowers % - Dec-24 Borrower Vintage with CA Grameen Borrowers % - Dec-24 Borrower Vintage with CA Grameen Out of 23.6% borrowers
Slide 13: Transitory PAR Has Peaked, Stabilization Has Begun
Transitory PAR Has Peaked, Stabilization Has Begun Top 5 States % GLP PAR 0+ PAR 30+ PAR 60+ PAR 90+ PAR Trend 6.8% Karnataka 32.0% 4.3% 2.9% 1.9% 1.2% 4.9% 5.1% Maharashtra 20.7% 5.0% 3.9% 3.1% 2.3% 2.5% 3.3% 3.8% Tamil Nadu 19.5% 8.9% 6.4% 4.6% 3.2% 1.8% 1.7% 1.3% 2.4% 1.4% 1.4% 1.8% Madhya Prades
Slide 14: Demonetisation: Resilient Business Model To Drive Faster Normalization
Resilient Business Model To Drive Faster Normalization PAR 0+ PAR 30+ PAR 60+ PAR 90+ 16.1% 15.9% 14.7% Demonetisation: 13.6% 11.3% 10.3% 8.9% 8.1% 7.3% 6.3% 6.0% Resiliency demonstrated during every crisis: 5.6% 1.9% 3.7% 1.5% • CA Grameen has consistently demonstrated asset 8.0% 9.1% 8.5% 1.2% 0.1
Slide 15: Early Risk Recognition & Conservative Provisioning
Early Risk Recognition & Conservative Provisioning Q3 FY25 (INR Cr) Consolidated Credit Cost (INR Cr) Q3 FY25 9M FY25 Asset Classification (dpd) EAD EAD% ECL% Opening ECL - (A) 868.7 503.4 Stage 1 0 – 15 (GL), 0 – 30 (RF) 23,027.8 93.9% 1.19% Stage 2 16 – 60 (GL), 31 – 90 (RF) 508.4 2.1% 58.7% Addit
Slide 16: Performance Vs. Annual Guidance
Performance Vs. Annual Guidance FY25 FY25 Revised FY25 Updated Preliminary view on FY26: 9M FY25 Key Indicators Guidance Guidance Guidance Performance • Good visibility on delivering (May-24) (Oct-24) (Jan-25) 18-20% GLP growth • Limited impact of MFIN guardrails Aiming for 7% - 8% growth in FY25: 6
Slide 17: Strategic Initiatives: Improving Employee Efficiency & Enhancing Customer Experience Through Technology
Strategic Initiatives: Improving Employee Efficiency & Enhancing Customer Experience Through Technology Grameen Maitri (Employee App) MAHI (Customer App) 1 • Designed for employees, Grameen Maitri is a comprehensive platform that manages the entire customer lifecycle from on-boarding to closure with
Slide 18: Discussion Summary
Discussion Summary Key Performance Highlights Asset Quality & Business Overview Financial Results Overview Liability Strategy Investment Rationale www.creditaccessgrameen.in 18
Slide 19: 9M FY25: Key Performance Highlights
9M FY25: Key Performance Highlights Cost/Income NIM Ratio GLP Disbursements 13.0% PPOP 30.4% INR 24,810 Cr INR 13,564 Cr INR 2,004 Cr (+6.1% YoY) (-10.1% YoY) Wgtd. Avg. COB (+17.3% YoY) Opex/GLP Ratio 9.8% 4.5% ROA CRAR Total Total Equity GNPA*: 3.99% PAT 2.3% 25.9% INR 6,907 Cr INR 484 Cr NNPA*: 1
Slide 20: Q3 FY25: Key Performance Highlights
Q3 FY25: Key Performance Highlights Cost/Income NIM Ratio GLP Disbursements 12.5% PPOP 31.3% INR 24,810 Cr INR 5,085 Cr INR 623 Cr (+6.1% YoY) (-4.9% YoY) Wgtd. Avg. COB (+3.5% YoY) Opex/GLP Ratio 9.8% 4.6% ROA CRAR Total Total Equity GNPA*: 3.99% PAT -1.4% 25.9% INR 6,907 Cr INR -99.5 Cr NNPA*: 1.2
Slide 21: Q3 & 9M FY25: P&L Statement
Q3 & 9M FY25: P&L Statement Profit & Loss Statement (INR Cr) Q3 FY25 Q3 FY24 YoY% Q2 FY25 QoQ% 9M FY25 9M FY24 YoY% FY24 Interest Income 1,337.6 1,244.4 7.5% 1,417.7 -5.7% 4,192.5 3,536.9 18.5% 4,900.1 - Interest on Loans 1 1,306.9 1,220.0 7.1% 1,396.0 -6.4% 4,114.4 3,472.1 18.5% 4,812.5 - Interest
Slide 22: Q3 & 9M FY25: Balance Sheet
Q3 & 9M FY25: Balance Sheet Balance Sheet (INR Cr) Q3 FY25 Q3 FY24 YoY% Q2 FY25 QoQ% 9M FY25 9M FY24 FY24 Cash & Other Bank Balances 1,832.6 1,168.5 56.8% 733.2 149.9% 1,832.6 1,168.5 1,313.9 Investments 1,389.7 1,390.2 0.0% 1,302.5 6.7% 1,389.7 1,390.2 1,438.9 Loans - (Net of Impairment Loss Allowa
Slide 23: Continued Business Traction with Rural Focus
Continued Business Traction with Rural Focus Gross Loan Portfolio (INR Cr) Borrowers (‘000) 6.1% 2.4% 26,714 26,304 4,984 4,918 4,933 4,693 4,805 25,133 24,810 23,382 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 www.creditaccessgrameen.in 23
Slide 24: Consistent Growth in Infrastructure
Consistent Growth in Infrastructure Branches 8.7% 1,967 1,976 2,031 2,059 1,894 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Employees Loan Officers 1.5% -1.5% 19,041 19,395 19,659 19,562 19,333 13,054 13,191 13,411 13,379 12,862 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3
Slide 25: Robust Quarterly Performance Trend (1/3)
Robust Quarterly Performance Trend (1/3) Disbursements (INR Cr) Total Income (INR Cr) -4.9% 1,513 1,459 1,454 8,053 1,382 5,344 5,085 1,295 4,476 4,004 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Margin Analysis (%) Operating Efficiency (%) 21.0% 21.0% 21.0% 21.1%
Slide 26: Robust Quarterly Performance Trend (2/3)
Robust Quarterly Performance Trend (2/3) NII, PPOP, PAT (INR Cr) Asset Quality (%) 1,513 5.07% 1,459 1,454 1,382 1,295 3.53% 922 953 932 3.99% 802 862 1.95% 2.29% 602 683 709 672 623 1.81% 2.44% 1.18% 1.46% 2.64% 0.97% 1.74% 353 397 398 0.94% 1.13% 186 -99.5 0.75% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3
Slide 27: Robust Quarterly Performance Trend (3/3)
Robust Quarterly Performance Trend (3/3) GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 2.0 2.0 13.6 13.3 1.9 1.9 12.3 12.4 1.8 12.0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Borrowers / Branch Borrowers / Loan Officer 2,478 2,500 2,522 2,429 360 373 372 369
Slide 28: Product Range To Meet Diverse Customer Needs
Product Range To Meet Diverse Customer Needs GLP - Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Product Mix (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total IGL 21,800 93% 24,741 93% 24,076 92% 22,731 90% 22,227 89% Family Welfare 102 1% 82 0% 221 1% 211
Slide 29: Our Network & Presence
Our Network & Presence Our Presence as on Dec-24 Uttar Pradesh 112 Branch Network Q3 FY25 % Share Q3 FY24 % Share 16 States & 1 UT 422 Districts Karnataka 362 17.6% 337 17.8% Bihar 2,059 Branches Maharashtra 312 15.2% 311 16.4% 158 Tamil Nadu 386 18.7% 384 20.3% West Bengal Madhya Pradesh 161 7.8% 1
Slide 30: Discussion Summary
Discussion Summary Key Performance Highlights Asset Quality & Business Overview Financial Results Overview Liability Strategy Investment Rationale www.creditaccessgrameen.in 30
Slide 31: Progressing Well on Liability Strategy
Progressing Well on Liability Strategy Diversified Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management • Focus on long-term funding with strong diversification between domestic Banks - TL & foreign sources NBFCs - TL FIs - TL 61.9% • Target to meet funding require
Slide 32: Stable Liquidity/ ALM Position/ Credit Ratings / ESG Ratings
Stable Liquidity/ ALM Position/ Credit Ratings / ESG Ratings Static Liquidity / ALM Position For the Month For the Financial Year Debt Diversification Q3 FY25 FY25 Particulars (INR Cr) Jan-25 Feb-25 Mar-25 FY26 Total Drawdowns 3,862 (Jan-25 - Mar-25) Opening Cash & Equivalents (A) 3,104.2 3,671.5 4,
Slide 33: Discussion Summary
Discussion Summary Key Performance Highlights Asset Quality & Business Overview Financial Results Overview Liability Strategy Investment Rationale www.creditaccessgrameen.in 33
Slide 34: Past Five Years Performance Track Record (1/2)
Past Five Years Performance Track Record (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) Borrowers (‘000) CAGR CAGR CAGR 5% 22% 22% 23,134 4,910 26,714 18,539 4,055 4,264 21,031 3,912 3,824 15,466 16,599 11,996 13,587 10,389 11,011 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 F
Slide 35: Past Five Years Performance Track Record (2/2)
Past Five Years Performance Track Record (2/2) Note: Refer Annexure for definition of key ratios Margin Analysis (%) Operating Efficiency (%) Asset Quality (%) 20.9% 5.01% 19.4% 18.8% 18.3% 18.9% 4.9% 4.8% 4.9% 4.7% 4.5% 3.44% 2.78% 13.0% 1.78% 1.95% 12.2% 10.9% 11.6% 4.43% 10.7% 36.7% 38.1% 39.0% 3
Slide 36: Past Eight Years Cross Cycle Performance
Past Eight Years Cross Cycle Performance Cross-Cycle ROA (%) Cross-Cycle ROE (%) Strong Cross Cycle FY19 FY21 FY22 FY17-FY18 Performance Despite Floods, Covid Covid Demonetisation Several Crisis NBFC crisis Wave 1 Wave 2 5.6% 5.1% 5.0% 24.9% 22.2% 4.2% 3.6% Avg: 3.6% 18.0% 16.3% Avg: 15.0% 12.3% 12.
Slide 37: Highly Motivated Team, Strong Management Foresight & Execution Strength
Highly Motivated Team, Strong Management Foresight & Execution Strength Management Team with Decades of Experience across Banking and Finance Industries Udaya Kumar Hebbar Ganesh Narayanan Nilesh Dalvi Managing Director Chief Executive Officer Chief Financial Officer Sudesh Puthran Firoz Anam Gurura
Slide 38: Committed to Basics Through Classical JLG Lending Model
Committed to Basics Through Classical JLG Lending Model Microfinance loans are unsecured. JLG mechanism acts as security/ loan collateral Fully aligned with new harmonized guidelines in terms of - JLG Benefits: ✓ Formulation of Board approved policies ✓ Strong group bonding ✓ Process modifications ✓
Slide 39: Focus on Customer Centricity, Loyalty & Retention
Focus on Customer Centricity, Loyalty & Retention “One of the Lowest Cost Organised Financer” - One Stop Shop providing Support to Various Lifecycle Needs of the Customer One of the lowest lending rates in MFI industry Loan Customer Centric Ticket Size Tenure Purpose Type Products (INR) (months) Div
Slide 40: Calibrated Expansion Through Contiguous District-Based Approach
Calibrated Expansion Through Contiguous District-Based Approach Systematic geography selection based on the availability of infrastructure, competition, historical performance trend, social/ economic/ political/ climate risk, growth potential Ensures consistent replication of processes/ controls Fam
Slide 41: Unique Human Capital, Internal Audit & Risk Management
Unique Human Capital, Internal Audit & Risk Management Well-Established Operational Structure Multi-Pronged Approach For Risk Management Sound Understanding of Rural Market Internal Audit (IA): 410 – team members Business Heads • IA frequency – minimum 8 times in a year at branches, 4 times at RO, •
Slide 42: Strong Internal Control Structure: Three Lines Of Defence
Strong Internal Control Structure: Three Lines Of Defence 3rd line of defence: Internal Audit team 2nd line of defence: Risk team 1st line of defence: Field & Quality Control teams Zonal Manager / State Head Zonal Manager handles 100 – 120 branches Regional / Divisional Regional Manager handles 40-5
Slide 43: Continuous Technology Enhancement to Drive Operational Efficiency
Continuous Technology Enhancement to Drive Operational Efficiency Ensures Quick And Seamless Delivery of Need Based Financial Products and Services backed by Robust Technology Infrastructure High touch-high tech delivery model: Future Upgrades & Investments • Digitised all customer touchpoints • Inv
Slide 44: Integrating Risk Management in Every Operating Process
Integrating Risk Management in Every Operating Process Microfinance is a Collection Business, hence Risk Management is Integral to Core Strategy and Operating Processes Contiguous Customer Employee Target Customer Customer Lending Employee District-based Engagement Incentive Segment Due-Diligence Mo
Slide 45: Strong Parentage & Shareholder Base
Strong Parentage & Shareholder Base Shareholding Pattern – December 2024 Others, 9.57 MF, AIF, Insurance, Promoter 14.18 Group, 66.50 FPI, 9.76 Committed to Strong Financial Support Micro Finance Business via Patient Capital • CreditAccess India B.V. (CAI) • Invested through multiple rounds of speci
Slide 46: Key Ratios: Definitions
Key Ratios: Definitions 1. Portfolio Yield = (Interest on loans – processing fees + Income from securitisation)/ Avg. quarterly on-book loans 2. Weighted Avg. COB = (Borrowing cost – finance lease charges) / Daily average borrowings (excl. Financial Liability towards Portfolio Securitized) 3. Margin
Slide 47: Thank You!
For Further Queries: Nilesh Dalvi Chief Financial Officer Contact No – 9819289131 Thank You! Email Id – nilesh.dalvi@cagrameen.in Sahib Sharma DGM – Investor Relations Contact No – 7066559383 Email Id – sahib.sharma@cagrameen.in 47 47 www.creditaccessgrameen.in