Rs. 590 Crore Fraud Unearthed at IDFC FIRST Bank’s Chandigarh Branch; Four Employees Suspended

IDFC FIRST Bank Limited, in a regulatory filing addressed to the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), has disclosed a massive fraud of Rs. 590 crores at one of its branches in Chandigarh, under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Previously, the bank had received a communication from a certain Department of the Government of Haryana, requesting it to close its bank account and transfer its funds to another bank. During this process, some mismatches were noticed between the amount mentioned in the request and the balance actually available in the account.

From February 18, 2026, certain other Haryana government authorities also got involved with the bank in relation to their respective accounts with the bank. Meanwhile in the process, they also flagged discrepancies noticed between their recorded balances and the balances mentioned by the entities holding the accounts with the bank.

A preliminary internal review was conducted, which found the matter is limited to a particular group of government-linked accounts with the Haryana Government, which used to be managed by the Chandigarh branch, and does not affect other customers of the same branch.

The total amount that is under settlement at the aforesaid branch across these accounts is around Rs. 590 crore. The financial impact of the said action on the bank will depend on receipt of further information, further verification, recovery efforts, lien marking of suspicious beneficiary accounts in other banks, and legal proceedings.

Four employees who have been found to be involved in the present matter have been placed under suspension pending investigation. The bank has said that it will take strict disciplinary, civil, and criminal action against those responsible, including any external parties involved.

On February 20, 2026, a meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was conducted. The Audit Committee and the Board of Directors were briefed on February 21, 2026. The bank is currently in the process of appointing an independent agency to conduct a forensic audit, has informed its statutory auditors, has filed a police complaint, and is cooperating fully with investigating authorities.