MUMBAI - Shares of Bandhan Bank experienced a rebound today, rising over 1%, following the bank's clarification regarding an ongoing audit. The bank stated 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 comes in the wake of the bank's application for a second recovery tranche.
The clarification provided by Bandhan Bank comes after its stock suffered a significant drop of over 7% on Monday due to initial concerns over the audit related to loan claims. Investors were reassured by the bank's explanation, which led to a partial recovery in the bank's share value.
The recent audit concerns follow an earlier positive financial update from the bank. Earlier in January, Bandhan Bank reported robust growth for the Oct-Dec quarter, with an 18.6% increase in loans and a 14.8% rise in deposits. This performance had set a positive tone for the bank's operational metrics, indicating healthy financial growth.
Investors and market watchers will continue to monitor the situation as the audit progresses, keeping an eye on the bank's financial health and regulatory compliance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.