Private sector lender Bandhan Bank on Tuesday said the government-run National Credit Guarantee Trustee Company (NCGTC) will be conducting a detailed audit of the refund claims made by the bank under the trust’s credit guarantee fund. Clarifying on recent media report, the bank said the probe has not been initiated by the Reserve Bank of India (RBI).
Bandhan Bank’s stock rose as much as 3.17% intra-day following the clarification, before paring some of those gains. The scrip closed up 0.79% at Rs 234.90 on the BSE. It had fallen 7.39% on Monday on media reports of the audit.
“Subsequent to receiving the first tranche of CGFMU (credit guarantee fund for micro and small enterprises unit loans) recovery, the bank had applied for the second tranche of CGFMU claim amounting approximately Rs 1,290 crore. The NCGTC had conducted a preliminary sample audit on the application, and the bank has extended full co-operation in the process,” it said.
The NCGTC has further decided to conduct a detailed audit for the CGFMU portfolio of FY21, the lender said, adding that while it will extend full co-operation in the proposed audit, it is confident of recovering the entire claim initiated.
Bandhan Bank had received nearly Rs 917 crore for its claim made under the scheme in December 2022. The CGFMU is set up by the central government and managed by NCGTC as a trustee. Its purpose is guaranteeing lenders of payment in case of default in loans extended to eligible borrowers by banks.
Earlier this month, Bandhan Bank reported an on-year growth of 18.6% in its loans for the quarter ended December at Rs 1.15 trillion. Deposits for the quarter grew 14.8%.