Bandhan Bank Says NCGTC To Conduct Audit Of Claims Filed Under Credit Guarantee Scheme

Bandhan Bank announces that NCGTC will perform a detailed audit of its credit guarantee claims. After a preliminary review and full cooperation from the bank.
Bandhan Bank
Bandhan Bank

Private sector Bandhan Bank on Tuesday said the National Credit Guarantee Trustee Company (NCGTC) has decided to conduct a detailed audit of claims filed under a credit guarantee scheme.

In a regulatory filing, Bandhan Bank said subsequent to receiving the first tranche of Credit Guarantee Fund of Micro Units (CGFMU) recovery, the bank had applied for a second tranche of CGFMU claim amounting to Rs 1,290 crore.

The National Credit Guarantee Trustee Company Ltd (NCGTC) had conducted a preliminary sample audit on the application, and the bank 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, Bandhan Bank said.

"NCGTC has further decided to conduct a detailed audit for the CGFMU portfolio of FY21, and the same has been intimated to the bank... It is only the audit of the CGFMU claim made by the bank pertaining to the portfolio," it said.

The private lender also clarified that this is not an audit of the bank initiated by the regulator.

"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," it added.

Shares of Bandhan Bank closed at Rs 234.90, up 0.79 per cent over its previous close on the BSE.

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