CreditAccess Grameen’s (CAG) Q3FY21 numbers were below estimates, largely driven by upfronting of provisions and interest income reversals for pro-forma Gross Stage-3 (GS-3) assets. CAG’s disbursement growth returned to pre-Covid levels, which grew 31% YoY/179% YoY. Consolidated Gross Loan Portfolio (GLP) increased 12% YoY/10% QoQ. Consolidated pro-forma Gross Stage-3 (60+ dpd) came in at 6.14%. In Q3FY21, management took a call to upfront all provisions related to the incipient Covid related stress, resulting in an annualized credit cost of ~9%. CAG now carries an ECL of 5.7% on consolidated basis (v/s an expected overall credit loss of 4-4.5% from the Covid related stress). CAG’s management expects an annualized credit cost of ~1% going forward and the company could see writebacks of these provisions if the current recovery trend in collections continue.