Chandigarh: IDFC First Bank on Sunday disclosed a ₹590-crore fraud allegedly committed by certain employees and other individuals in accounts linked to the Haryana Government.
In a regulatory filing made in the early hours, the bank said it has informed the banking regulator and lodged a police complaint. According to the filing, prima facie unauthorised and fraudulent activities were carried out by certain employees at a specific branch in Chandigarh in a set of Haryana state government accounts, potentially involving other individuals, entities or counterparties.
The bank said it currently estimates the fraud size at around ₹590 crore. However, it added that a reconciliation exercise is underway to determine the final amount after validating claims, receiving further information and accounting for possible recoveries.
Providing details, the lender said a Haryana Government department had been banking with IDFC First Bank and had requested closure of accounts and transfer of balances to another bank. During this process, discrepancies were noticed between the amount mentioned and the actual balance in the accounts. Similar discrepancies were later observed in other accounts of Haryana Government entities that engaged with the bank from February 18 onwards.
The bank clarified that the issue appears confined to a specific group of government-linked accounts operated through the concerned Chandigarh branch and does not extend to other customers of the branch.
Four officials of the bank have been placed under suspension pending investigation. The lender said it will pursue strict disciplinary, civil and criminal action against employees and external individuals found responsible.
As part of recovery efforts, the bank has issued recall requests to certain beneficiary banks, asking them to lien-mark balances in suspicious accounts. Statutory auditors have been informed, and an independent external agency will conduct a forensic audit.
Following the discovery, the matter was placed before a Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds on February 20. The audit committee and the board were informed the next day.
Shares of IDFC First Bank closed 0.72 per cent higher at ₹83.56 apiece on the BSE on Friday, compared to a 0.38 per cent gain in the benchmark index.
For the quarter ended December 31, 2025, the bank reported a 24 per cent rise in deposits, including a 33 per cent increase in low-cost current and savings account deposits. Net profit rose 48 per cent to ₹503 crore during the October–December period.
