IDFC First Bank discloses fraud of ₹590 cr in a Chandigarh branch – CNBC TV18

IDFC First Bank has disclosed a fraud of roughly ₹590 crore at its Chandigarh branch, involving sure authorities-linked accounts, following a preliminary inner evaluation.

In a regulatory submitting beneath Regulation 30 of the SEBI Itemizing Rules, the financial institution mentioned it recognized an incident involving unauthorised and fraudulent actions by sure workers at a particular branch in Chandigarh, probably involving different people and entities.

The problem surfaced after the financial institution obtained a request from a division of the Haryana authorities to shut its account and switch funds to a different financial institution. Throughout the course of, discrepancies have been noticed between the quantity talked about and the steadiness out there in the account.

From February 18, 2026 onwards, different Haryana authorities entities additionally engaged with the financial institution relating to their respective accounts. Variations have been famous between the balances in the financial institution’s information and people cited by the entities.
Primarily based on the preliminary inner assessment, the matter has been confined to a particular group of authorities-linked accounts operated via the Chandigarh branch and doesn’t lengthen to different clients of the branch.

The combination quantity beneath reconciliation throughout the recognized accounts is roughly ₹590 crore. The ultimate impression will probably be decided upon receipt of additional info, validation of claims, recoveries together with lien marking on fraudulent beneficiary accounts maintained with different banks, liabilities of different entities concerned in the transactions and the authorized restoration course of.

4 suspected officers have been positioned beneath suspension pending investigation. The financial institution mentioned it’s going to pursue strict disciplinary, civil and legal motion towards the workers and different exterior people accountable, in accordance with relevant legislation.

Additionally learn: IDFC First Bank Q3 Outcomes: Core revenue grows 12% from final yr, asset high quality secure

A gathering of the Particular Committee of the Board for Monitoring and Observe-up of Instances of Frauds was convened on February 20, 2026, and the matter was positioned earlier than it. The Audit Committee and the Board of Administrators met on February 21, 2026 to apprise themselves of the developments.

The financial institution is appointing an impartial exterior company to conduct a forensic audit. The statutory auditors have been knowledgeable, a police grievance has been filed and the financial institution mentioned it’s going to lengthen full co-operation to investigating companies. It has additionally despatched recall requests to sure beneficiary banks to lien-mark balances in suspicious accounts.