Bandhan Bank issues clarification on reports questioning business procedure for lending
The bank noted that it has a strong credit policy in place for all types of lending products, including Microfinance Loans.
PremiumBandhan Bank has responded to an article published by BQ Prime by providing clarification and refuting the allegations made in the article.
In an official statement, the bank has stated that the allegations are entirely false, lacking in basis, and misleading in nature. The bank noted that it has a strong credit policy in place for all types of lending products, including Microfinance Loans.
Meanwhile, Bandhan Bank's stock experienced a slight decline of 0.21% on the Bombay Stock Exchange (BSE), reaching a low of ₹209.60.
The eligibility of borrowers is determined based on the Credit Policy of the Bank, which aligns with the microfinance guidelines introduced by the Reserve Bank of India (RBI) on April 01, 2022. Before disbursing any loan, the creditworthiness of the borrower is thoroughly assessed, and the loan amount granted does not exceed the borrower's assessed creditworthiness, the statement read.
“We wish to clarify that deposits from micro-credit customers is only about 4% of the Bank’s total deposits as on Q3 FY23 and is stable around the same level for the last several quarters," stated the release.
Furthermore, Bandhan Bank categorically stated that there is no discrepancy between the sanctioned and disbursed amount for microfinance loans.
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