IDFC First Bank Receives ₹514.82 Cr CGFMU Claim from NCGTC

IDFC First Bank Ltd has received ₹514.82 crore from NCGTC under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme, pertaining to its microfinance (MFI) portfolio. These MFI loans, lent to women entrepreneurs under the Joint Liability Group structure, were sanctioned up to March 2025. The payout represents approximately 100% of the claim submitted by the bank. As the bank had already made provisions for these MFI defaults, the received amount is expected to be a write-back of these provisions. Around 97% of new microfinance loan originations from January 2024 onwards are covered under the CGFMU Scheme.