84,000 Loans Disbursed To These Bank Customers Without Any Consent! How This Happened?

Almost 84,000 loans in May 2021 have been disbursed without client consent!
Almost 84,000 loans in May 2021 have been disbursed without client consent!

Almost 84,000 loans in May 2021 have been disbursed without client consent!

And IndusInd Bank admitted the same but stated that it was due to a “technical glitch” but termed allegations of evergreening of loans by subsidiary “grossly inaccurate and baseless”.

This was originally reported by field employees two days ago, and the problem was quickly resolved, according to a statement.

IndusInd Bank Has Disbursed Loans Without Client Consent!

 There was a media report on Friday about someone anonymously writing to the bank management and the RBI about BFIL, allegedly resorting to evergreening of loans, wherein existing borrowers unable to pay dues were given new loans to present the books as clean.

“The bank strongly denies the allegations of ‘evergreening’. All the loans originated and managed by BFIL, including during the Covid period which saw the first and second waves ravaging the countryside, are fully compliant with the regulatory guidelines,”

“Due to a technical glitch in May 2021, nearly 84,000 loans were disbursed without the customer consent getting recorded at the time of loan disbursement,” it added.

An official statement said

“Operational issues” due to the pandemic’s second wave like lockdowns, containment zones, and restrictions at the village/panchayat level had necessitated disbursement of some loans in cash, it said.

IndusInd Bank On The Matter

The bank said that at the end of September, 26,073 of the 84,000 clients were active, with a loan outstanding of Rs 34 crore, or 0.12% of the portfolio, and that it had made adequate provisions against the loans.

The bank also ensured that the Standard Operating Procedure would be revised in October 2021 to make biometric authorization mandatory.

Following the clearance of their arrears and with their consent, the bank provided additional liquidity support to the extent of 20% of the outstanding as of February 29, 2020, as applicable under the Emergency credit line guarantee Scheme, restructuring, and additional loan with a longer tenor and lower EWI for customers.

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