NCGTC to pay Bandhan Bank extra Rs 315 cr for claims under CGFMU scheme
Source: Business Standard
Bandhan Bank on Thursday said the National Credit Guarantee Trustee Company (NCGTC), after conducting a forensic audit of the claims made by the bank regarding its loan portfolio under the Credit Guarantee Fund for Micro Units (CGFMU), has stated that the total claim payout to the bank under the scheme is Rs 1,231.29 crore as of March 31, 2024.
Additionally, since they have already settled the bank’s first claim of Rs 916 crore, they will pay an additional claim of Rs 314.68 crore to the bank.
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The claim amounts are net of recoveries of approx. Rs 228.40 crore as of March 31, 2024, made by the bank from the accounts covered under the CGFMU scheme (claimed under the first tranche), which are currently held in the bank’s balance sheet, the bank said in a statement to the exchanges.
Further, the bank said that Rs 543.08 crore (Rs 314.68 crore claim plus Rs 228.40 crore recoveries) will be accounted for in the bank’s profit and loss as part of ‘Other Income’.
Bandhan Bank had taken insurance for the loan portfolio of approx. Rs 20,807 crore under the CGFMU scheme, and while 85 per cent of the portfolio was repaid by the borrowers, the remaining 15 per cent turned bad and was duly provided for and written off as of March 31, 2024.
The bank initially claimed Rs 916.61 crore, and NCGTC settled the claim in December 2022. Later, in Q2 of FY24, the bank made an additional claim of Rs 1,296.32 crore, following which NCGTC conducted a forensic audit of the claims.
First Published: Oct 10 2024 | 9:20 PM IST
