Fraud at Chandigarh branch: IDFC First Bank repays Rs 583 crore to Haryana govt
The bank says it has immediately honoured 100% of the principal and interest claimed by the relevant departments of the Government of Haryana
- Feb 24, 2026,
- Updated Feb 24, 2026 9:52 PM IST
Private lender IDFC First Bank has repaid Rs 583 crore - covering both principal and interest - to Haryana government departments after uncovering a Rs 590-crore fraud linked to accounts at one of its branches in Chandigarh.
Also read: IDFC First Bank shares: ICICI Sec cuts target by 18% but sees fraud impact manageable
"Preliminary findings indicate that certain employees of the branch acted fraudulently in clearing forged instruments and payment instructions, potentially in collusion with external parties. The matter is currently under investigation by the relevant authorities," the bank said in a statement.
"Despite the investigation being ongoing, the Bank has immediately honoured 100% of the principal and interest claimed by the relevant departments of the Government of Haryana, amounting to Rs 583 crore," it added.
The lender further said that it is "financially strong and well-capitalised". "As of December 31, 2025, the Bank is rated AAA by CRISIL for Fixed Deposits and holds AA+ long-term ratings from CRISIL, ICRA, India Ratings, and CARE. Its total customer business (loans and deposits) stands at ₹5,62,090 crore, up 22.6% year-on-year. Asset quality is healthy, with GNPA at 1.69% and Net NPA at 0.53%. The Bank’s capital adequacy ratio is 16.22%, and its CASA ratio is 51.6%," the bank said.
Earlier in the day, Haryana Chief Minister Nayab Singh Saini told the Assembly that nearly the entire amount had already been restored to government accounts. "Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," Saini said in the House.
"I want to clarify before the House that the money concerning Haryana government departments, the entire amount has been deposited back into our accounts...The recovery has been made within 24 hours," he added.
The chief minister said the bank had informed the government that the fraud was limited to a specific branch in Chandigarh and involved four to five employees from the middle and lower ranks who allegedly colluded in the scheme.
"The government will ensure that anybody who is involved – be it a bank employee, private individual or even a government employee -- will not be spared," Saini said.
IDFC First Bank had earlier disclosed that the fraud was "confined to a specific group of government-linked accounts within the Haryana government" operated through the Chandigarh branch, and stressed that it did not affect other customers.
The discrepancy came to light after a Haryana government department requested closure of its account and transfer of funds to another bank. During the process, the bank found a mismatch between its recorded balance and the amount reflected by the department.
The initial discrepancy was pegged at Rs 490 crore, with a further Rs 100 crore subsequently identified, taking the total to Rs 590 crore.
The bank said the investigation is ongoing, and it is working with authorities to identify those responsible and recover the misappropriated funds.
Private lender IDFC First Bank has repaid Rs 583 crore - covering both principal and interest - to Haryana government departments after uncovering a Rs 590-crore fraud linked to accounts at one of its branches in Chandigarh.
Also read: IDFC First Bank shares: ICICI Sec cuts target by 18% but sees fraud impact manageable
"Preliminary findings indicate that certain employees of the branch acted fraudulently in clearing forged instruments and payment instructions, potentially in collusion with external parties. The matter is currently under investigation by the relevant authorities," the bank said in a statement.
"Despite the investigation being ongoing, the Bank has immediately honoured 100% of the principal and interest claimed by the relevant departments of the Government of Haryana, amounting to Rs 583 crore," it added.
The lender further said that it is "financially strong and well-capitalised". "As of December 31, 2025, the Bank is rated AAA by CRISIL for Fixed Deposits and holds AA+ long-term ratings from CRISIL, ICRA, India Ratings, and CARE. Its total customer business (loans and deposits) stands at ₹5,62,090 crore, up 22.6% year-on-year. Asset quality is healthy, with GNPA at 1.69% and Net NPA at 0.53%. The Bank’s capital adequacy ratio is 16.22%, and its CASA ratio is 51.6%," the bank said.
Earlier in the day, Haryana Chief Minister Nayab Singh Saini told the Assembly that nearly the entire amount had already been restored to government accounts. "Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," Saini said in the House.
"I want to clarify before the House that the money concerning Haryana government departments, the entire amount has been deposited back into our accounts...The recovery has been made within 24 hours," he added.
The chief minister said the bank had informed the government that the fraud was limited to a specific branch in Chandigarh and involved four to five employees from the middle and lower ranks who allegedly colluded in the scheme.
"The government will ensure that anybody who is involved – be it a bank employee, private individual or even a government employee -- will not be spared," Saini said.
IDFC First Bank had earlier disclosed that the fraud was "confined to a specific group of government-linked accounts within the Haryana government" operated through the Chandigarh branch, and stressed that it did not affect other customers.
The discrepancy came to light after a Haryana government department requested closure of its account and transfer of funds to another bank. During the process, the bank found a mismatch between its recorded balance and the amount reflected by the department.
The initial discrepancy was pegged at Rs 490 crore, with a further Rs 100 crore subsequently identified, taking the total to Rs 590 crore.
The bank said the investigation is ongoing, and it is working with authorities to identify those responsible and recover the misappropriated funds.