Latest News

NCGTC will conduct audit of loan claims filed by Bandhan Bank under CGFMU


➡️ Click here to join our Whatsapp Group

On Tuesday, Bandhan Bank of India announced that the National Credit Guarantee Trustee Company (NCGTC) would be conducting an audit of the loan claims submitted by the bank within the framework of a guarantee scheme.

In an official filing with the exchange, the bank made it clear that the regulatory scrutiny does not extend to a broader audit. Bandhan Bank, having already received the initial recovery installment from the Credit Guarantee Fund of Micro Units (CGFMU), sought a second tranche amounting to approximately Rs 1,290 crore ($155.3 million).

The CGFMU, a government-established trust fund, ensures payment against default for micro loans provided to eligible small borrowers. The NCGTC, also established by the government, oversees these guarantee schemes.

According to the filing, the NCGTC has communicated its decision to conduct a thorough audit of the CGFMU portfolio for the fiscal year 2020-21. Bandhan Bank expressed confidence in recovering the claimed amount.

Despite media reports triggering a 7.39 per cent decline in Bandhan Bank’s stock on Monday, the clarification on Tuesday resulted in a 3.17 per cent increase, although some of those gains were later trimmed. Earlier this month, the bank reported an 18.6 per cent year-on-year growth in loans for the October-December period, accompanied by a 14.8 per cent increase in deposits.

Leave a Reply

Your email address will not be published. Required fields are marked *