Bandhan Bank Set to Receive Additional ₹315 Crore from NCGTC After CGFMU Claim Review

Bandhan Bank Set to Receive Additional ₹315 Crore from NCGTC After CGFMU Claim Review

Bandhan Bank announced on Thursday that the National Credit Guarantee Trustee Company (NCGTC) has concluded its forensic audit of claims made by the bank under the Credit Guarantee Fund for Micro Units (CGFMU) scheme. Following the audit, NCGTC determined that the total claim payout to the bank under the scheme stands at ₹1,231.29 crore as of March 31, 2024.

The NCGTC had previously settled ₹916 crore of the claim, and will now release an additional ₹314.68 crore to Bandhan Bank. These amounts are net of recoveries, with the bank having already recovered approximately ₹228.40 crore from accounts covered under the CGFMU scheme. The recoveries were made from the first tranche of claims and are currently reflected in the bank’s balance sheet.

Bandhan Bank clarified that the total amount of ₹543.08 crore—comprising ₹314.68 crore from the additional claim and ₹228.40 crore in recoveries—will be recorded under ‘Other Income’ in the bank’s profit and loss statement.

The bank had insured a loan portfolio of approximately ₹20,807 crore under the CGFMU scheme, of which 85% was repaid by borrowers. The remaining 15% of the portfolio became non-performing and was written off by March 31, 2024. Initially, the bank claimed ₹916.61 crore, which was settled by NCGTC in December 2022. In Q2 FY24, the bank filed an additional claim of ₹1,296.32 crore, leading to the NCGTC forensic audit.