Sun Feb 22 07:52:17 UTC 2026: # IDFC FIRST Bank Reports ₹590 Crore Fraud at Chandigarh Branch

The Story:
IDFC FIRST Bank Ltd. has disclosed a significant fraud of approximately ₹590 crore at one of its Chandigarh branches. The discrepancy was discovered during a routine closure request from a department of the Haryana Government, revealing irregularities between the requested transfer amount and the actual account balance. Further investigation uncovered similar discrepancies across other Haryana Government entities’ accounts held at the same branch.

The bank has initiated internal reviews, suspended four suspected officials, and plans to pursue legal action against those responsible. A special committee of the Board, the Audit Committee, and the Board of Directors have convened to address the matter. An independent forensic audit will be conducted, and the bank has requested beneficiary banks to place liens on suspicious accounts.

  • Key Points:
  • Fraud of approximately ₹590 crore discovered at IDFC FIRST Bank’s Chandigarh branch.
  • Discrepancies found in Haryana Government accounts during a closure request.
  • Four officials suspended pending investigation.
  • Independent forensic audit to be conducted.
  • Bank pursuing disciplinary, civil, and criminal action.
  • Special Committee of the Board, Audit Committee, and Board of Directors have convened to address the issue.

Key Takeaways:

  • The incident highlights potential vulnerabilities in internal controls and oversight at the bank’s Chandigarh branch, specifically concerning government-linked accounts.
  • The bank’s swift response in suspending officials, initiating an audit, and involving legal processes demonstrates a commitment to addressing the fraud.
  • The fraud raises concerns about the security and integrity of transactions involving government funds and the potential for collusion within the banking system.
  • The outcome of the forensic audit and subsequent legal proceedings will be crucial in determining the extent of the fraud and holding those responsible accountable.
  • This event could potentially impact investor confidence in IDFC FIRST Bank, at least in the short term, depending on how effectively the bank manages the situation and recovers the funds.

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