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Drought-hit Maharashtra borrowers seek repayment extensions, CreditAccess warns of higher Q3 credit costs

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Drought-hit Maharashtra borrowers seek repayment extensions, CreditAccess warns of higher Q3 credit costs

Drought-hit Maharashtra borrowers seek repayment extensions, CreditAccess warns of higher Q3 credit costs

The repayment requests remain at an early stage, and the company has not observed comparable stress in other geographies. Collections in flood-affected northern states have normalised, while expectations of a normal northeast monsoon provide some comfort.

GNPA fell to 1.79% from 2.18%, while NNPA declined to 0.59% from 0.76%. The lender raised FY27 NIM guidance to 14.4-14.7% from 12.8-13.2%. Retail finance grew 151% year on year, lifting its share of AUM to 23.3%.Customer additions are expected to exceed one lakh a month in H2, up from the current run rate of 80,000.

Borrowers in drought-affected pockets of central Maharashtra have begun seeking additional time to repay loans from CreditAccess Grameen , including through possible restructuring, prompting the lender to prioritise existing customers over new sourcing and intensify collections. The company expects credit costs to rise in the December quarter due to potential drought-related stress and seasonal factors, including festivals, but remains confident of keeping full-year credit costs within its guidance of 3-4%. The repayment requests remain at an early stage, and the company has not observed comparable stress in other geographies. Collections in flood-affected northern states have normalised, while expectations of a normal northeast monsoon provide some comfort, according to an Axis Securities report following the lender’s second-quarter results. Advt

18% in the previous quarter. 71%, broadly stable sequentially. The lender attributed the temporary deterioration in portfolio-at-risk accretion during August and September mainly to excessive rainfall, flooding in some operating regions and seasonal festivities, rather than weakening borrower behaviour.


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