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Motilal Oswal Report
CreditAccess Grameen Ltd. is well prepared to capitalise on the growing opportunity in the microfinance segment by:
improving its ticket size with customer vintage (~48% borrowers still have a vintage of less than three years);
adding new borrowers with a strong rural focus;
improving branch productivity (~300 branches set up over the last two years); and
expanding into relatively less penetrated geographies.
CreditAccess operates in a joint liability group model and differentiates itself in the flexibility it provides to customers through its nuanced approach.
The company also provides customers with the flexibility to choose the repayment frequency (weekly/bi-weekly/monthly) based on their cash flows. Weekly center meetings are held with customers, irrespective of their repayment frequencies.
Tight discipline in processes and practices at CreditAccess will ensure strong GLP growth. We expect GLP growth to remain intact and estimate a compound annual growth rate of 21%/23% in disbursement/GLP over FY24-26.
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