Bandhan Bank on Tuesday said that the National Credit Guarantee Trustee Company (NCGTC) has decided to conduct a detailed audit for the credit guarantee fund for micro units (CGFMU) portfolio of financial year 2020-21.
However, the Kolkata-based bank has clarified in an exchange filing that the regulator has not initiated a broader audit.
“We would further like to clarify that this is not an audit of the bank initiated by the regulator. It is only the audit of the CGFMU claim made by the bank pertaining to the portfolio,” it said in a notification to stock exchanges.
“The bank shall extend its full co-operation in the proposed audit and is confident that it will get recovery of the claim initiated,” it added.
After receiving the first tranche of recovery from the Credit Guarantee Fund of Micro Units, Bandhan Bank had applied for a second tranche of about Rs 1,290 crore, it said in an exchange filing.
On the NCGTC audit, the bank said the authority 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, it has given detailed explanations along with the process followed in support of the claim to NCGTC.
Earlier this month, Bandhan Bank reported an 18.6 per cent year-on-year increase in loans for the October-December period, with deposits rising 14.8 per cent.
On Monday, Bandhan Bank’s stock had fallen 7.39 per cent on media reports of the audit. However, after the bank’s clarifications on Tuesday, the stocks rose as much as 3.17 per cent.
For the quarter ending December, the bank reported a growth of 18.6 per cent in its loans and advances during the third quarter ending December 31 at Rs 1,15,964 crore.