Bandhan Bank rises on securing claim worth Rs 917 cr

Bandhan Bank gained 2.13% to Rs 252 after the bank said that it has received claim amounting to Rs 916.61 crore under the Credit Guarantee Fund for Micro Units (CGFMU) scheme for FY 2022-23.

CGFMU is the Trust Fund set up by Government of India, managed by National Credit Guarantee Trustee Company (NCGTC) as a Trustee, with the purpose of guaranteeing payment against default in micro loans extended to eligible borrowers by banks/NBFCs/MFIs/other financial intermediaries.

The objective of CGFMU is to provide comfort to lenders so that institutional credit is extended to micro and small enterprises (MSEs) especially without collateral and third part guarantee and to enhance Government's efforts in promoting and developing entrepreneurship.

In an exchange filing Bandhan Bank, said, The bank had obtained guarantee under Credit Guarantee Fund for Micro Units (CGFMU), the trust fund set up by Government of India, managed by National Credit Guarantee Trustee Company (NCGTC) as a trustee, with the purpose of guaranteeing payment against default in loans extended to eligible borrowers by banks. The bank has received claim under the scheme for FY 2022-23 amounting to Rs 916.61 crore.

Bandhan Bank operates as a commercial bank. The banking outlets as on 30 September 2022, stood at 5,646. The network consists of 1,190 branches, 4,456 banking units as against 1,168 branches and 4,450 banking units as on September 30, 2021. Total number of ATMs stood at 432 as on 30 September 2022 against 487 as on 30 September 2021. During the quarter, the number of employees of the bank has gone up from 61,247 to 64,078.

The private lender reported a net profit of Rs 209.27 crore in Q2 FY23 as against a net loss of Rs 3,008.60 crore recorded in Q2 FY22. Total income jumped 14.69% year on year to Rs 4,249.87 crore in Q2 FY23.

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