IDFC First Bank has filed a police complaint following the discovery of unauthorized and fraudulent activities at its Chandigarh branch. The bank is currently in the process of filing additional complaints with law enforcement.
In a notification to stock exchanges on Saturday, the bank disclosed that certain employees were involved in fraudulent acts. The total amount currently being reconciled across the affected accounts is estimated at ₹590 crore.
Immediate Action and Suspensions
As a first step, the bank has suspended four officials suspected of being involved in the incident. These suspensions will remain in place while the investigation continues.
The fraud was discovered when a department of the Haryana Government requested to close its account and move its funds to another bank. During this process, bank officials noticed that the actual account balance did not match the amount the department expected to see.
Scope of the Fraud
In a regulatory filing with SEBI, IDFC First Bank clarified that the issue is limited to a specific group of accounts linked to the Haryana Government at the Chandigarh branch. The bank assured customers that this matter does not affect any other accounts at that location.
Starting February 18, 2026, other Haryana Government entities reached out to the bank regarding their own accounts. During these reviews, more discrepancies were found between the bank’s records and the balances reported by the government agencies.
Recovery and Investigation Steps
The bank stated that the final financial impact will be determined after:
- Validating all claims and further information.
- Identifying the liabilities of other parties involved.
- Completing the legal recovery process.
To recover the funds, the bank has asked other banks to “lien mark” or freeze balances in suspicious beneficiary accounts.
Next Steps
“The bank will pursue strict disciplinary, civil, and criminal action against the employees and any external individuals responsible,” the lender stated.
In addition to the police investigation, IDFC First Bank is appointing an independent external agency to perform a forensic audit to uncover exactly how the fraud occurred.
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