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AUM declines ~4% and collection efficiency dips ~170bp sequentially

Stage 3 (60+ dpd) rises ~100bp QoQ

* CREDAG’s 2QFY25 disbursements declined ~19% YoY and ~11% QoQ to INR40b (PQ: ~INR45b). AUM decreased ~4% sequentially to INR251b (PQ: INR263b). ? Collection efficiency (including arrears) declined ~170bp QoQ to ~96.2% in 2QFY25 (PQ: 97.9%).

* PAR 60+ and 90+ rose ~100bp QoQ and ~60bp QoQ to ~2.4% and ~1.7%, respectively.

* CRAR stood at ~26.4% (PQ: 25.2%) during the period.

* CREDAG’s business update was largely in line with MOFSLe but weaker than consensus. We continue to believe that 2QFY25 will be a weak quarter for CREDAG and other NBFC-MFI companies under our coverage.

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