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Bandhan Bank clarifies the NCGTC audit is only on CGFMU loan claims

CGFMU is a government-established trust fund which ensures payment against default for micro loans that are extended to small borrowers

With the IDFC buy, Kolkata-headquartered Bandhan group will gain an entry straightway into the top-10 club.

Aathira Varier Mumbai

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Bandhan Bank on Tuesday clarified in a stock exchange filing that the National Credit Guarantee Trust Company (NCGTC) is undertaking a Reserve Bank of India (RBI) audit of the Credit Guarantee Funds for Micro Units (CGFMU) loan claims filed by the bank. However, it does not pertain to the bank in its entirety.

CGFMU is a government-established trust fund which ensures payment against default for micro loans that are extended to small borrowers.

The bank had applied for a second tranche of CGFMU loan worth nearly Rs 1,290 crore after receiving the first tranche worth Rs 916.6 crore in December 2022.

As per the exchange filing, NCGTC has decided to conduct a detailed audit for the CGFMU portfolio of FY 2020-21 which has been intimated to the Bank.

The NCGTC had conducted a preliminary sample audit on the application of the bank and it has extended full co-operation in the process. Based on the preliminary audit findings, the Bank has given detailed explanations along with the process followed in support of the claim made by the Bank to NCGTC.

The Bank shall extend its full co-operation in the proposed audit and is confident that the Bank will get recovery of the claim initiated, the filing added.

Recently, Bandhan Bank noted an 18.60 per cent year-on-year (YoY) growth in advances to Rs 1,15,964 crore in Q3 FY24 as compared to Rs 97,787 crore same time a year ago.

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First Published: Jan 09 2024 | 6:40 PM IST

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