Mumbai, February 21, 2026: IDFC FIRST Bank has disclosed a suspected fraud involving approximately ₹590 crore at its Chandigarh branch, according to a regulatory filing made to the stock exchanges on Friday.
The bank informed both the National Stock Exchange of India and BSE Limited that it had identified unauthorized and potentially fraudulent activities involving certain employees at a specific branch in Chandigarh. The matter reportedly pertains to accounts linked to certain departments of the Haryana Government.
The issue came to light after a department of the Haryana Government requested closure of its account and transfer of funds to another bank. During this process, discrepancies were observed between the account balance and the amount mentioned by the department.
Subsequently, from February 18, 2026, onwards, other Haryana Government entities also engaged with the bank regarding their accounts, where further inconsistencies were detected.
According to the bank’s preliminary internal assessment, the matter is confined to a specific group of government-linked accounts operated through the Chandigarh branch and does not extend to other customers of the branch.
The bank stated that the aggregate amount under reconciliation across the identified accounts is approximately ₹590 crore. However, the final financial impact will be determined after validation of claims, recovery efforts, lien marking on suspicious beneficiary accounts maintained with other banks, and completion of the legal recovery process.
IDFC FIRST Bank has taken multiple steps following the discovery:
Four suspected officials have been placed under suspension pending investigation.
Disciplinary, civil, and criminal proceedings will be pursued against employees and external individuals involved.
The bank has filed a complaint with police authorities.
Statutory auditors have been informed.
A Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds convened on February 20, 2026.
The Audit Committee and Board of Directors were briefed on February 21, 2026.
An independent external agency is being appointed to conduct a forensic audit.
Requests have been sent to certain beneficiary banks to lien-mark balances in suspicious accounts.
The bank also confirmed that it has informed its regulator and is complying with applicable disclosure requirements under SEBI Listing Regulations.
An independent forensic audit is expected to provide further clarity on the nature, timeline, and extent of the alleged fraudulent activities. The bank indicated that further updates will be shared as more information becomes available.