India's CreditAccess Grameen slumps after GS downgrade on earnings, asset quality concerns

RBL Bank

29/11/2024 06:56

** Shares of CreditAccess Grameen  CRDE.NS  slide 8.1% to
907 rupees, set for their worst day since Feb. 2022
    ** Stock set to snap five-session winning run
    ** Goldman Sachs downgrades CRDE to "sell" from "buy",
slashes PT to 564 rupees from 1,464 rupees, a Street-low per
LSEG data
    ** Brokerage says microfinance lender's accelerating asset
quality decline in Q2 a negative surprise
    ** Adds, asset quality to deteriorate further after newer
regulations by the RBI
    ** Earnings visibility clouded amid asset quality concerns -
Goldman Sachs
    ** Larger lenders IndusInd Bank  INBK.NS , Kotak Mahindra
Bank  KTKM.NS  and RBL Bank  RATB.NS  all flagged stress in
microfinance loans-collateral-free loans given to those with an
annual income of up to 300,000 rupees-in Q2 results
    ** Avg rating on CRDE remains "buy", median PT at 1,170
rupees - LSEG data
    ** CRDE drops ~43% YTD after two straight annual gains

 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))