By Ritu Singh Oct 16, 2020 11:40:09 AM IST (Updated)
CFO of Sambandh Finserv disclosed that the lender had found internal frauds involving bogus loan entries made in its book.
Odisha-based Sambandh Finserve Private Limited (SFPL) defaulted on its repayment obligations to its lenders due to liquidity issues after an internal fraud was unearthed at the end of September.
According to a note released by Brickwork Ratings, Sambandh Finserve’s lenders informed the credit rating agency of a delay in meeting repayment obligation since October 1, 2020, following which the microfinance lender’s rating was downgraded to ‘D’.
Brickwork Ratings’ note further says that the Chief Financial Officer of Sambandh Finserve disclosed that the lender had found internal frauds involving a large quantum of bogus loan entries made in its book. This also resulted in the company suddenly facing liquidity issues in the first week of October, leading to a default. SFPL is now conducting an internal investigation in the matter, which has been initiated by its board.