Here’s why CreditAccess Grameen shares are up 9% in a weak market

Shares of CreditAccess Grameen Ltd. are bucking the trend in an otherwise weak and volatile market on Friday, July 4, gaining as much as  7%, after the company reported its provisional update for the first quarter on Thursday.During the quarter, write-offs to the tune of ₹693 crore impacted the company’s loan growth. This also includes accelerated write-offs.
Gross loans of र26,055 crore in the June quarter declined 0.9% from र26,304 crore in the year-ago period, it increased 0.4% sequentially from र25,948 crore in the previous quarter.
Excluding the one-off components, CreditAccess’ loan growth would have been 1.7% year-on-year and 3.1% sequentially.Meanwhile, the company also showed early signs of improving asset quality.
CreditAccess Grameen’s portfolio at risk (PAR) for 90-days plus remained unchanged sequentially at 3.3% but was up 1.13% from the year-ago period. PAR 90+days is a key indicator of loan repayment issues.Meanwhile, its PAR 90+days, excluding Karnataka, was at 2.5%, down 120 basis points from 3.7% in the previous quarter.

PAR 0+ days was at 5.9% in the June quarter, down 100 basis points from 6.9% in the previous quarter. The same stood at 2.5% in the first quarter of the previous fiscal.

For the financial year 2026, the company has guided for assets under management (AUM) growth of 14% to 18%. Of this, microfinance institution (MFI) segment growth will be 8% to 12%.

The company said its June quarter recorded its highest-ever first quarter disbursements and had strong business momentum.

Shares of CreditAccess Grameen Ltd gained 9% to hit an intraday high of र1,354.8 apiece on Friday, July 4. The stock was trading 7% higher at र1,328.6 apiece at 11.40 am. The stock has gained 13.4% in the past month and 49% this year, so far.

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