IDFC First Bank Limited has informed the Exchange about Update on CGFMU Claim from NCGTC
IDFCFIRSTB · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.0 pts more than Nifty Midcap 150 and 2.1 pts more than its Private Sector Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
Minute windows have no benchmark: there is no intraday index history to compare against.
IDFC First Bank has received ₹514.82 crore from the National Credit Guarantee Trustee Company (NCGTC) as a claim payout under the Credit Guarantee Fund for Micro Units (CGFMU) scheme. This pertains to the bank's microfinance portfolio consisting of loans to women entrepreneurs under Joint Liability Groups. The payout covers eligible MFI loans sanctioned up to March 2025 and represents approximately 100% of the claim submitted. Since the bank had already made provisions for these MFI defaults in prior periods, this amount will be a write-back of those provisions, positively impacting the bank's income. Additionally, about 97% of all new microfinance loan originations from January 2024 onwards are now covered under the CGFMU scheme.
This write-back of provisions will boost the bank's profitability and reduce its non-performing asset burden. For shareholders, this is a positive development as it strengthens the balance sheet and improves earnings without any cash outflow.