- IDFC First Bank reported Rs 590 crore fraud at its Chandigarh branch involving certain employees
- Four suspected officials have been suspended pending investigation into unauthorised activities
- Fraud detected after Haryana Government requested account closure and fund transfer
IDFC First Bank informed the stock exchanges on Saturday about an incident involving unauthorised and fraudulent activities by certain employees at a particular branch in Chandigarh, with the aggregate amount under reconciliation across identified accounts estimated at Rs 590 crore.
The bank said that four of its suspected officials have been placed under suspension pending the investigation.
The fraudulent activity came to the fore when discrepancies were observed in the amount mentioned vis-à-vis the balance in the account after the bank received a request from a particular Department of Haryana Government for account closure and transfer of funds to another bank.
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In a regulatory filing under Regulation 30 of the SEBI, the banks stated that the matter is confined to a specific group of government-linked accounts within the Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch.
"From February 18, 2026, onwards, certain other Haryana Government entities engaged with the Bank with regard to their respective accounts with the Bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the said Haryana Government entities holding accounts with the Bank."
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Stating that the aggregate amount under reconciliation across the identified accounts at the branch is approximately ₹590 crore, the bank noted that the impact may be determined based on receipt of further information, validation of claims, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process.
The bank added that it has filed a complaint with the police and is in the process of filing further complaints with appropriate law enforcement agencies.
"The bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law."
The bank is also in the process of appointing an independent external agency to conduct a Forensic Audit.
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