Bandhan Bank today said that the National Credit Guarantee Trustee Company (NCGTC) has completed the detailed forensic audit of claims made by the bank under the Credit Guarantee Fund for Micro Units (CGFMU) scheme, and assessed the total claim payout to the Bank under the CGFMU scheme as ₹1,231.29 crore as on March 31, 2024.

Of this, the Bank had already claimed and received an amount of ₹916.61 crore from NCGTC in December 2022. Considering that the first claim has been settled to the extent of ₹916.61 crore, final claim payout as on March 31, 2024 stands at ₹314.68 crore, Bandhan Bank said in a statement.

This amount is about 56% of the ₹2,212.93 crores claimed by the bank under scheme, but including the recoveries of approximately ₹228.40 crore made from accounts covered under CGFMU scheme (claimed under first tranche), the bank will recover over 65% of the claims.

The Bank had previously insured a loan portfolio worth ₹20,807 crore under the CGFMU scheme for the fiscal year 2020-21 and disbursed over ₹1,948 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) since FY 2020-21. Bandhan Bank initially claimed ₹916.61 crore from the NCGTC in December 2022 and later filed for an additional ₹1,296.32 crore during the second quarter of FY24. Following the claims, the NCGTC conducted an audit through an independent firm, which led to observations that prompted a detailed forensic audit beginning in December 2023.

Upon completion of the audit, NCGTC revised the total claim amount to ₹1,231.29 crore, with ₹314.68 crore pending after the settlement of the initial ₹916.61 crore claim. Certain accounts were excluded from the final claim due to operational limitations faced by the Bank during the COVID-19 pandemic in FY 2020-21, which led to adjustments in the payout.

“The detailed audit is now completed and based on the review of the audit outcome, the NCGTC has deliberated and issued a communication dated October 10, 2024, wherein they have assessed the total claim payout to the Bank under the CGFMU scheme as ₹1,231.29 crore as on March 31, 2024. Considering that the first claim has been settled to the extent of ₹916.61 crore, final claim payout as on March 31, 2024 stands at ₹314.68 crore. The revised amount considers exclusion of certain accounts which have been adjusted from the claim, based on a conservative approach taken by the Bank in view of certain operational gaps due to limitations imposed by Covid restrictions during FY 2020-21,” Bandhan Bank said in its statement.

In addition to the ₹314.68 crore payout, Bandhan Bank recovered ₹228.40 crore from accounts covered under the first tranche of claims. Both the payout and recoveries, totaling approximately ₹543.08 crore, will be accounted for as ‘Other Income’ in the Bank’s profit and loss statement for FY24. Any future recoveries on eligible accounts will be returned to NCGTC, while the Bank retains the right to recognize recoveries from excluded accounts.

Furthermore, under the ECLGS, Bandhan Bank had raised a claim of ₹508 crore, of which ₹161.13 crore has already been settled. The remaining ₹347 crore was on hold, pending the audit’s outcome. With the audit now completed, the Bank has been cleared to submit a fresh claim for NCGTC’s consideration.