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PAR accretion continues to dip MoM; KAR X-bucket CE has touched ~99% at the end of Mar’25

AUM growth slightly below our estimate; healthy collections from PAR buckets

Loan growth

* CREDAG’s AUM declined ~3% YoY and grew ~5% QoQ to INR259b as of Mar’25 (slightly below our estimates) vs. INR248b as of Dec’24. The share of Karnataka in AUM stood at INR80.1b as of Mar’25 vs. INR79.3 as of Dec’24, while AUM in other states stood at INR179b as of Mar’25 vs. INR169b as of Dec’24.

* During 4QFY25, 250K+ new borrowers were added.

Collections

* The X bucket CE % (ex-Karnataka) largely normalized at >99.6% in Mar’25.

* The PAR 15+ and PAR 0 Accretion/AUM in Karnataka improved significantly in Mar’25, following an uptick in Feb’25. The X bucket CE % in Karnataka improved to ~98.5% in Mar’25 from ~96.9% in Feb’25, touching ~99.0% at the end of Mar’25.

* There was a significant reduction in PAR 15+ accretion across other operating geographies during 4QFY25.

* Collections were healthy from the PAR buckets, with 40% of borrowers in PAR 1-60 and 10% of borrowers in PAR 60+ making partial payments.

Asset quality

* Stabilizing asset quality led by declining PAR accretion rates across all states, partially offset by elevated PAR accretion in Karnataka. PAR accretion continued to decline in all states (including Karnataka) in Mar’25.

* PAR 0+ (ex-Karnataka) declined ~190bp QoQ to 6.1%. PAR 30+ rose 40bp QoQ, PAR 60+ increased 50bp QoQ and PAR 90+ rose 70bp QoQ to 5.5%, 4.3%, and 3.3%, respectively.

Write-offs

* Accelerated write-offs stood at INR5b in 4QFY25.

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