MUMBAI, Jan 9 Reuters India39;s Bandhan Bank said on Tuesday that the National Credit Guarantee Trustee Company NCGTC has decided to undertake an audit of loan claims filed by the lender under a guarantee scheme.

The bank clarified in an exchange filing that the regulator has not initiated a broader audit.

After receiving the first tranche of recovery from the Credit Guarantee Fund of Micro Units CGFMU, Bandhan Bank had applied for a second tranche of about 12.90 billion rupees 155.3 million, the lender said in an exchange filing.

CGFMU is a governmentestablished trust fund to ensure payment against default for micro loans extended to eligible small borrowers.

NCGTC, also set up by the government, oversees these guarantee schemes.

The NCGTC has further intimated its decision to conduct a detailed audit of the CGFMU portfolio for the fiscal year 202021, the filing showed.

The lender is confident of recovering the claim amount, it said.

Earlier this month, Bandhan Bank reported an 18.6 yearonyear increase in loans for the OctoberDecember period, with deposits rising 14.8.

Bandhan Bank39;s stock rose as much as 3.17 on Tuesday following the clarification, before paring some of those gains. It had fallen 7.39 on Monday on media reports of the audit.

1 83.0860 Indian rupees

Reporting by Siddhi Nayak; Editing by Dhanya Ann Thoppil

Source Reuters