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The microfinance institution faces a possible recall of nearly Rs 6,000 crore in loans given by banks, which it will be hard-pressed to repay given the state of its assets.

Divergent narratives from the Haryana government and the lender raise deeper questions on oversight, authorizations and systemic lapses—answers that may emerge only after a forensic audit.
The Bengaluru-based lender is once again gearing up to seek the RBI’s nod after the central bank returned its application last year.
The Kerala-based bank has been chasing costly and risky bulk term deposits amid tanking profitability.