Bandhan Bank witnessed a rebound in its shares, rising by over 1%, following the bank’s clarification on ongoing audit concerns. The bank addressed the issue, stating that the National Credit Guarantee Trustee Company (NCGTC) is conducting an audit for Credit Guarantee Fund for Micro Units (CGFMU)-related claims for the fiscal year 2020-21. This audit is in connection with the bank’s application for a second recovery tranche.
The clarification comes after Bandhan Bank’s stock experienced a notable decline of over 7% on Monday due to initial concerns related to the audit of loan claims. Investors found reassurance in the bank’s explanation, leading to a partial recovery in the share value.
The recent audit concerns follow a positive financial update from Bandhan Bank earlier in January. The bank reported robust growth for the October-December quarter, showing an 18.6% increase in loans and a 14.8% rise in deposits. This performance had initially set a positive tone for the bank’s operational metrics, indicating healthy financial growth.
As the audit progresses, investors and market observers will continue to monitor the situation closely, focusing on the bank’s financial health and regulatory compliance.