CreditAccess Grameen: Sustainable And Responsible
CreditAccess Grameen (CA Grameen) is an Indian microfinance institution, headquartered in Bengaluru, which serves customers predominantly in rural areas
CA Grameen was established in 1999 by Vinatha M. Reddy. In August 2018, the company was listed on National Stock Exchange and Bombay Stock Exchange with a Rs 1,131 crore IPO.
The company is now operating across 398 districts in 16 states and one Union Territory through 2,031 branches. The company’s promoter is CreditAccess India B.V., a multinational company specialising in micro and small enterprise financing. It is backed by institutional investors and has a micro-lending experience in India of more than a decade.
Udaya Kumar Hebbar, Managing Director, CA Grameen, is a microfinance industry veteran who established that inclusive finance could succeed with a market-based model. He has been the architect behind the transformational journey of building the CA Grameen brand as the leading microfinance institution in India.
Strong Performance
For the fiscal year 2024, CA Grameen's gross Assets Under Management (AUM) soared an impressive 27.02 per cent year-over-year, reaching a staggering Rs 26,714 crore. Simultaneously, the customer base expanded 15.33 per cent year-over-year, now encompassing 49.2 lakh individuals. This surge was propelled by the robust addition of 13.6 lakh new customers in FY24, reflecting the organisation’s resolute commitment to diversifying its reach across emerging geographies. Such progress is not merely a statistic; it signifies a profound impact on the communities served.
In 2024 CA Grameen is commemorating its silver jubilee, a milestone that encapsulates a legacy of excellence and innovation. During FY24, the organisation proudly delivered a Profit After Tax (PAT) of Rs 1,446 crore, achieving an industry-leading Return on Assets (RoA) of 5.60 per cent and a Return on Equity (RoE) of 24.85 per cent. This success is particularly noteworthy as it positions CA Grameen as the lowest-cost lender in the microfinance sector, embodying a philosophy of responsible service to its customers.
As CA Grameen gazes toward the horizon of growth, the establishment of a strong and diversified liability franchise becomes paramount. In a groundbreaking move, the organisation successfully raised $200 million through a syndicated social loan—the first of its kind in the microfinance industry and the fourth of its kind from India. This pivotal achievement has paved the way for the foray into new markets, including Taiwan, the Philippines, Singapore, and the Middle East, introducing prospective lending institutions to the burgeoning growth potential of the Indian microfinance sector. Domestically, CA Grameen secured Rs 989.6 crore through the second tranche of public non-convertible debentures (NCDs), attracting 80,720 investors across various segments, including retail, high net-worth individuals (HNI), non-institutional, and institutional categories.
CA Grameen relentless pursuit of excellence has garnered accolades and recognition from rating agencies and institutions. CRISIL has upgraded its rating from A+/Positive to AA-/Stable, establishing it as the highest-rated standalone microfinance company in India. The organisation’s commitment to environmental, social, and governance (ESG) principles is further underscored by the ratings received from CDP, Sustainalytics, and S&P Global.
As CA Grameen embarks on its next chapter, the foundation of strong corporate governance, coupled with exemplary management, ensures a brighter future for its customers and stakeholders alike. The past 25 years of success would not have been possible without the unwavering support of customers, employees, lenders, regulators, and government bodies. Together, they have contributed to a legacy of empowerment and inclusivity that continues to flourish.
