Mumbai: IDFC First Bank has disclosed a fraud of around Rs 590 crore involving certain employees and others in accounts linked to the Haryana government. According to a PTI report, the bank informed the banking regulator and filed a police complaint after detecting the issue.
In a regulatory filing made early Sunday, the bank said unauthorised and fraudulent activities were found at a specific branch in Chandigarh. The issue relates to a set of Haryana government accounts and may involve other individuals or entities.
How the Issue Came to Light
The matter surfaced when a Haryana government department requested closure of its account and transfer of funds to another bank. During the process, the bank noticed differences between the stated amount and the actual account balance.
Further checks showed similar discrepancies in other government-linked accounts operated through the same branch. The bank clarified that the issue is limited to a specific group of government accounts in Haryana and does not affect other customers of the Chandigarh branch.
At present, the total amount under reconciliation is estimated at Rs 590 crore. The final figure will be known after verification, validation of claims and possible recoveries.
Action Taken by the Bank
The bank has suspended four officials pending investigation. It has assured strict disciplinary, civil and criminal action against those responsible.
As a recovery step, the bank has sent recall requests to beneficiary banks and asked them to mark liens on suspicious accounts. Statutory auditors have been informed, and an independent forensic audit will be conducted by an external agency.
The issue was placed before a Special Committee of the Board on February 20 and later shared with the audit committee and the full board.
Financial Performance
On Friday, the bank’s shares closed at Rs 83.56 on the BSE, up 0.72 per cent. In the December 2025 quarter, the bank reported a 48 per cent rise in net profit to Rs 503 crore and a 24 per cent growth in deposits.
