Microfinance lender CreditAccess Grameen has outlined an ambitious growth roadmap centred on stronger asset quality, digital innovation and balance sheet resilience.
In its Annual Report 2026, Ganesh Narayanan, Managing Director & Chief Executive Officer, said FY26 was a year focused on strengthening the company’s balance sheet, improving portfolio quality and sustaining business growth amid challenging sector conditions.
Asset quality recovery gains momentum
According to Narayanan, asset quality normalisation took longer than initially anticipated, but the company witnessed a strong turnaround in portfolio performance from November 2025 onwards.
“We are pleased with the steady progress made on all fronts. While asset quality normalisation took longer than expected, we witnessed a strong pull-back and consistent improvement in the PAR trends from November 2025 onwards across our operating geographies,” he said.
Microfinance remains critical to financial inclusion
Narayanan highlighted the strategic role played by the microfinance sector in India’s financial ecosystem, describing it as an important engine of financial inclusion that closely mirrors grassroots economic conditions.
He noted that the government’s ₹200 billion Credit Guarantee Scheme underscores the sector’s importance in extending credit access to low-income households and supporting economic participation at the bottom of the pyramid.
AUM growth driven by rural opportunities
CreditAccess Grameen reported a 14.04% year-on-year increase in Gross AUM to ₹295.90 billion during FY26, supported by growing demand across rural and semi-urban markets.
The company’s retail finance portfolio emerged as a major growth driver, with AUM surging 247.63% year-on-year to ₹53.62 billion.
The lender said its execution capabilities enabled it to outperform industry benchmarks, resulting in a Return on Assets (RoA) of 2.7% and Return on Equity (RoE) of 10.7% during the year.
Diversified funding strengthens growth engine
A key pillar of CreditAccess Grameen’s strategy has been the diversification of its liability profile. The company said foreign borrowings now account for 24.4% of its overall funding mix following years of efforts to build a globally diversified liability franchise.
During FY26, CreditAccess Grameen secured more than $300 million through the External Commercial Borrowing (ECB) route across multiple geographies, reflecting international investor confidence in its business model and social impact credentials.
The diversified funding strategy also helped reduce the company’s average borrowing cost by 60 basis points to 9.2% by the end of the financial year.
Credit rating reaffirms business strength
The company said the reaffirmation of its AA-/Stable credit rating validates the strength of its business model, risk management framework and long-term growth prospects.
Narayanan added that technology will play an increasingly important role in advancing financial inclusion as customer aspirations rise and digital adoption accelerates across rural India.
Mahi platform expands digital reach among women
One of the company’s key milestones during FY26 was the rapid adoption of Mahi, its dedicated digital platform designed for women borrowers.
Built to provide customers direct access to loan information without relying on field officers, the platform enables users to view balances, repayment schedules, conduct digital loan checks and make cashless collections.
Eyes ₹500 billion AUM milestone
Looking ahead, the lender remains focused on achieving its medium-term target of ₹500 billion AUM by 2028 while balancing growth with prudent risk management.
“Our medium-term ambition to reach ₹500 billion AUM by 2028 will be pursued with discipline, empathy and purpose,” Narayanan said, adding that technology and financial inclusion will remain central to the company’s growth strategy.