IDFC First Bank has uncovered a major fraudulent activity at its Chandigarh branch, with discrepancies amounting to around Rs 590 crore. The bank has suspended four officials linked to the case and is actively pursuing further investigations. The irregularity came to light when the bank received a request from a Haryana Government department to close certain accounts and transfer funds to another bank.
During the reconciliation process, significant differences were noticed between the balances mentioned by the department and the actual account figures.
In its regulatory filing under SEBI’s Regulation 30, IDFC First Bank clarified that the issue is limited to a specific group of government-linked accounts operated through the Chandigarh branch and does not affect other customers of the 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,” the filing stated.
Bank Takes Immediate Action
IDFC First Bank has filed a complaint with the police and is preparing additional complaints with relevant law enforcement agencies. The bank also confirmed it is appointing an independent external agency to conduct a forensic audit.
“The bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law,” the IDFC First Bank noted in the filing.
Impact And Recovery Process
The aggregate amount under reconciliation across the identified accounts stands at approximately Rs 590 crore. The final impact will depend on verification of claims, validation of other involved entities’ liabilities, and the legal recovery process. The bank is committed to ensuring accountability and recovering any losses through appropriate legal channels.
