Bandhan Bank’s loan claims to be audited by govt agency

Bandhan Bank said on Tuesday that the National Credit Guarantee Trustee Company (NCGTC) has decided to carry out an audit of loan claims filed by the bank under a guarantee scheme.

However, the bank clarified that the regulator has not initiated a broader audit of the bank, but only the CGFMU claim pertaining to the portfolio.

After receiving the first tranche of recovery from the Credit Guarantee Fund of Micro Units (CGFMU), Bandhan Bank had applied for a second tranche of about Rs 1,290 crore, the lender said in an exchange filing.

CGFMU is a government-established trust fund to ensure payment against default for micro loans extended to eligible small borrowers.

NCGTC, also set up by the government, oversees these guarantee schemes.

The NCGTC has further intimated its decision to conduct a detailed audit of the CGFMU portfolio for the fiscal year 2020-21, according to the bank’s filing.

Bandhan Bank also said that it is confident of recovering the claim amount.