Bandhan Bank says total claim payout to it under CGFMU scheme assessed at ₹1,231.29 cr

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Bandhan Bank on Thursday said the National Credit Guarantee Trustee Company (NCGTC) has assessed the total claim payout to the Bank under the Credit Guarantee Fund for Micro Units (CGFMU) scheme at .₹1,231.29 crore as on March 31, 2024.

This assessment of the total claim payout follows completion of a detailed (forensic) audit and is based on the review of the audit outcome, the Bank said in a regulatory filing.

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, per the filing.

The above-mentioned claim payout of ₹314.68 crore and the recoveries (from the first tranche claim) held in the Bank’s books of ₹228.40 crore as on March 31, 2024 (that is total of about ₹ 543.08 crore) will be suitably accounted in the Bank’s P&L as part of ‘Other Income’, it added.

What this means is that the Bank’s bottomline will get a ₹543 crore boost, depending on when the claim is settled by NCGTC.

Loan portfolio

The Bank had taken insurance of the loan portfolio of approximately .₹20,807 crore under the CGFMU scheme pertaining to loans for FY 2020-21 and disbursed over ₹1,948 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) from FY 2020-21 onwards.

“It may also be noted that nearly 85 per cent of the total portfolio of approximately Rs.20,807 crore insured under CGFMU scheme, have been repaid by customers. The residual non-performing portfolio has been fully provided for and technically written off as on March 31, 2024,” according to the filing.

The Bank emphasised that the maximum amount eligible for claim under the CGFMU scheme is 15 per cent of the total insured amount. So far, it has claimed and received an amount of ₹916.61 crore from NCGTC in December 2022.

The Bank said it had made an additional claim of ₹1,296.32 crore in the second quarter of FY24. The total amount claimed was within the maximum eligible amount (of ₹3,121.05 crore).
“Any recoveries post March 31, 2024 on eligible accounts (which are settled by NCGTC) will be returned to NCGTC. For any recoveries on excluded accounts, the Bank reserves the right to retain and recognize the same in the Bank’s financials,” it added.

The Bank noted that in addition to the above, the Bank had raised a claim of about ₹508 crore to NCGTC under the ECLGS scheme so far, out of which an amount of ₹161.13 crore had been settled by NCGTC.

“The remaining amount of about .₹347 crore was kept on hold, pending the outcome of the forensic audit. As the audit is now completed, NCGTC has allowed the Bank to review and submit a fresh claim to NCGTC for their consideration,” per the filing.