IDFC First Bank Flags ₹590 Crore Fraud

IDFC First Bank has reported a ₹590 crore discrepancy in deposits linked to Haryana government accounts at its Chandigarh branch.

In a regulatory filing, the bank said it has identified four employees as suspects and suspended them pending investigation. The matter has been reported to the police and relevant regulators.

Internal Review and Audit

According to the bank, the issue was escalated to its board during a special meeting held on February 21. The disclosure was made to stock exchanges under Regulation 30 of the SEBI Listing Regulations and has also been uploaded on the bank’s website.

The lender has informed its statutory auditors and initiated steps to appoint an independent external agency for a forensic audit. It has also sent recall requests to certain beneficiary banks to lien-mark balances in accounts considered suspicious.

Scope of the Issue

Based on a preliminary internal assessment, the bank said the discrepancy is limited to a specific group of Haryana government-linked accounts operated through the Chandigarh branch. It added that other customers at the branch are not affected.

The total amount under reconciliation across the identified accounts is approximately ₹590 crore. The final financial impact will depend on verification of claims, recoveries, and the outcome of legal proceedings.

Haryana Government Action

Regional reports indicate that the Haryana government has directed its departments, boards, corporations and universities to close accounts with certain private banks, including IDFC First Bank and AU Small Finance Bank, effective February 18, 2026.

Departments have reportedly been instructed to shift funds to nationalised banks. Any private bank accounts will now require prior approval from the state finance department.

The move is understood to be linked to suspected financial irregularities and is aimed at strengthening compliance with fund management and reconciliation guidelines.

Ongoing Investigation

The bank has stated that further action will depend on the findings of the forensic audit and ongoing investigations. Recovery measures, including lien-marking of balances in beneficiary accounts maintained with other banks, are in progress.

Authorities have not yet released additional details. The investigation is continuing.