Leading private sector lender IndusInd Bank on Saturday admitted that it had disbursed loans to 84,000 people by technical fault without their permission. These loans were given in May this year. The bank also said that its field officers caught the mistake within two days and it was also resolved expeditiously. A whistleblower had written a letter to the RBI saying that BFIL, the small finance arm of IndusInd Bank, has disbursed loans heavily even to those borrowers who had not repaid their previous loans.
IndusInd Bank has issued a clarification terming the whistleblower's allegations as baseless and beyond facts. The bank said that new loans have not been disbursed to the borrowers who are unable to repay the loan. Its small finance branch strictly adheres to the rules of Reserve Bank of India (RBI) and other regulators in the matter of lending to its customers.