CreditAccess Grameen Shares Surge 10% Following Strong Q4 Performance
CreditAccess Grameen jumps 10% on strong Q4 update, asset quality recovery
Business Standard
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Shares of CreditAccess Grameen, an Indian microfinance company, surged by 10% to reach ₹1,298 after announcing robust business growth and normalized asset quality for the fiscal year 2026. The company's gross loan portfolio increased by 14% year-over-year, signaling strong demand and recovery in the microfinance sector.
- 01CreditAccess Grameen's share price rose by 10% to ₹1,298 following a strong Q4 update.
- 02The company's gross loan portfolio increased by 14% year-over-year to ₹29,590 crore.
- 03Disbursements for Q4FY26 reached ₹8,313 crore, up 28% from the previous year.
- 04Asset quality fully normalized with a collection efficiency of 99.84%.
- 05Analysts suggest buying on dips, with key resistance at ₹1,300.
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CreditAccess Grameen, an Indian microfinance lender, saw its shares jump 10% to ₹1,298 amid a generally subdued market, following a strong update for the fourth quarter of fiscal year 2026 (Q4FY26). The company reported a gross loan portfolio of ₹29,590 crore, marking a 14% increase from ₹25,948 crore in the same quarter last year. Disbursements during this period totaled ₹8,313 crore, up 28% year-over-year, contributing to an overall 24% increase in disbursements for FY26, which reached ₹24,860 crore. The asset quality has fully normalized, with an impressive collection efficiency of 99.84%. Additionally, the company opened 183 new branches in FY26, enhancing its operational footprint. Analysts from SBI Securities noted that the easing stress in the microfinance segment bodes well for continued disbursement momentum. Harish Jujarey, an equity research analyst, highlighted that the stock found support around ₹1,150 and suggested that a decisive move above ₹1,300 could lead to further upside potential.
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The strong performance of CreditAccess Grameen indicates a recovery in the microfinance sector, which could lead to increased lending and financial inclusion for low-income borrowers.
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