IDFC FIRST Bank Chandigarh branch discloses ₹590 crore fraud

IDFC FIRST Bank Ltd, a private sector bank has reported ₹590 crore fraud at one of its branches in Chandigarh.

“The aggregate amount under reconciliation across the identified accounts at the above mentioned Branch is approximately ₹590 crore. The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature including those made through the process of marking lien on fraudulent beneficiary accounts maintained with other Banks, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process,” the bank informed the stock exchanges.

The bank said it received a request from a particular Department of Haryana Government for closure of its account and transfer of funds to another bank.

“In the process, certain discrepancy were observed in the amount mentioned vis-à-vis the balance in the account,” the bank said in the filing.

“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,” it said.

“Based on the preliminary internal review conducted, the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch,” it added.

After the matter came to light the bank has placed four suspected officials under suspension pending investigation.

The bank said it “will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.”

“A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was convened on February 20, 2026 and the matter was placed before the Committee,” it said.

“The meeting of the Audit Committee and the Board of Directors were convened on February 21, 2026 to apprise on the matter,” it said in the filing.

The bank will appoint an independent external agency to conduct an independent Forensic Audit, and has sent recall request to certain beneficiary banks to lien mark balance in suspicious accounts held in these banks.