Indian microfinance lender CreditAccess slumps on first-ever quarterly loss

CreditAccess Grameen

27/01/2025 05:57

** Shares of microfinance lender CreditAccess Grameen Ltd
 CRDE.NS  down 12.19% to 804 rupees 
    ** Stock on track for biggest one-day pct decline in nearly
five years
    ** Co reports first-ever quarterly loss of 995 mln rupees 
($11.52 mln) on higher credit costs and sharp rise in provisions
for bad loans
    ** Co trims full-year return on assets forecast to 2.3%-
2.4% from 3%-3.5%
    ** Trimmed outlook looks "slightly optimistic" - Emkay
    ** India's microfinance segment sees asset quality
deterioration due to over-leveraging, increase in number of
loans
    ** CRDE's Q3 gross loan portfolio growth of 6% y/y "soft"
due to "current stressed environment" - Emkay
    ** Stock rated 'buy' on avg by 17 analysts; median PT at
1,130 rupees - LSEG data
    ** With session's decline, stock extends 12-month loss to
~48.5%    


($1 = 86.3800 Indian rupees)

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))