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The microfinance institution reported robust loan portfolio growth across most of its operational geographies, adding over 150,000 new borrowers in January and February. This brings its Gross Loan Portfolio (GLP) to Rs 25,395 crore in February 2025, up from Rs 24,810 crore in December 2024. However, the report also highlighted challenges in the Karnataka region, where asset quality has deteriorated. PAR 0+% (loans overdue by any amount) rose to 7.9% in February from 4.3% in December, and PAR 90+% (loans overdue by 90 days or more) increased to 2.1% from 1.2% over the same period. The company attributed the increase in delinquencies in Karnataka to the recent Karnataka Ordinance, which introduced new regulations on microfinance lenders. The Karnataka Micro Loan and Small Loan (Prevention of Coercive Action) ordinance 2025, effective 12 February 2025, created initial ambiguities and on-ground sensitivities that impacted collections. CreditAccess Grameen emphasized that the situation in Karnataka is stabilizing following clarifications and communication with borrowers and stakeholders. Despite the temporary increase in delinquencies, Karnataka's PAR 0+ remains lower than some other operating regions, and the company expects a gradual return to normal conditions within 1-2 months. CreditAccess Grameen is a leading Indian microfinance institution headquartered in Bengaluru, focused on providing micro-loans to women customers predominantly in rural areas across India. The company is now operating across 422 districts in 16 states (Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh & West Bengal) and one union territory (Puducherry) through 2,059 branches. On a consolidated basis, CreditAccess Grameen reported net loss of Rs 99.52 crore in Q3 December 2024 as against net profit of Rs 353.34 crore in Q3 December 2023. Total income rose 6.7% year-on-year to Rs 1381.93 crore in Q3 December 2024. Powered by Capital Market - Live News |