IDFC First Bank Reports ₹590 Crore Fraud at Chandigarh Branch
IDFC First Bank has reported a ₹590 crore fraud at one of its branches located in Chandigarh, raising concerns over internal controls and financial exposure.
In an official regulatory filing to the stock exchanges, the private sector bank stated that the aggregate amount under reconciliation across identified accounts is approximately ₹590 crore at the Chandigarh branch.
The bank further clarified that the final financial impact will be determined after:
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Receipt of additional information
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Validation of claims
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Potential recoveries
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Marking of lien on fraudulent beneficiary accounts held with other banks
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Assessment of liabilities of entities involved in the fraudulent transactions
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Completion of the legal recovery process
IDFC First Bank emphasized that recovery efforts are underway, including coordination with other banks and legal channels to mitigate losses arising from the alleged fraudulent transactions.
The incident marks a significant development in India’s banking sector, as investigations continue to determine the full scope and financial implications of the fraud.
Discrepancies Found in Haryana Government Accounts
According to the filing, the issue surfaced after a department of the Haryana Government requested closure of its account and transfer of funds to another bank.
During the process, the bank observed discrepancies between the amount mentioned and the actual balance in the account.
From February 18, 2026, additional Haryana Government entities engaged with the bank regarding their respective accounts. Further inconsistencies were identified between the balances recorded by the bank and those reported by the government entities.
Fraud Limited to Specific Government-Linked Accounts
Based on a preliminary internal review, IDFC First Bank confirmed that the matter is confined to a specific group of government-linked accounts operated through the Chandigarh branch.
Importantly, the bank clarified that the issue does not impact other customers of the Chandigarh branch.
Four Officials Suspended; Forensic Audit Ordered
Following the discovery of the suspected fraud:
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Four bank officials have been suspended pending investigation
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The bank will pursue strict disciplinary, civil, and criminal action against employees and external individuals found responsible
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An independent external agency will conduct a forensic audit
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Recall requests have been sent to beneficiary banks to lien-mark balances in suspicious accounts
Board and Audit Committee Meetings Convened
A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was held on February 20, 2026, where the matter was formally reviewed.
Subsequently, meetings of the Audit Committee and the Board of Directors were convened on February 21, 2026, to assess the situation and oversee further action.
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