IndusInd Bank provides clarification on subsidiary Bharat FinancialINDUSINDBK - 1435 Change: 6.55 (0.46 %)
News: IndusInd Bank in its filing with exchanges clarified on allegations made about wholly owned subsidiary and business correspondent for microfinance loans, Bharat Financial Inclusion (BFIL).The technical glitch was a result of IT change management and process gap. The portfolio, net of provisions, amounted to Rs.8.87 crore as of December 31, 2021 (0.03% of microfinance portfolio). The bank, on a prudent basis, carries a contingent provisions of Rs.3,328 crore outside of provision coverage ratio, including Rs.368 crore towards standard microfinance portfolio, as of December 31, 2021. Further, the bank will make additional provisions of Rs.13.5 crore in Q4FY22 based on the findings of the review.
Views:We believe this comes as a positive for IndusInd Bank, as the long awaited hangover for the bank comes to an end