IDFC First Bank has successfully received ₹514.82 crore as part of a claim related to its microfinance portfolio under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme. This payout represents nearly 100% of the claim submitted by the bank and pertains to eligible microfinance loans sanctioned up to March 2025.
The microfinance loans in question were extended to women entrepreneurs operating under a Joint Liability Group structure. The bank had previously made provisions for defaults in this segment, and the received amount is expected to be a write-back of these provisions.
Notably, IDFC First Bank has ensured that approximately 97% of all new microfinance loan originations from January 2024 onwards are covered under the CGFMU Scheme, highlighting its commitment to mitigating risks associated with microfinance lending.
This development is part of the bank’s ongoing efforts to strengthen its financial position and enhance its service offerings to microfinance clients.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).