IDFC First Bank detects Rs 590 crore fraud linked to Haryana govt accounts, suspends four officials
The matter is confined to a specific group of government-linked accounts within the Haryana Government operated through the said branch in Chandigarh and does not extend to other customers, says IDFC First Bank
- Feb 22, 2026,
- Updated Feb 22, 2026 11:24 AM IST
IDFC First Bank on Saturday disclosed that it has identified a suspected fraud involving approximately Rs 590 crore at its Chandigarh branch, linked to certain Haryana government accounts.
In a regulatory filing to the stock exchanges dated 21 February, the bank said it had conducted a preliminary internal assessment after receiving communication from a department of the Haryana government.
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The private lender said discrepancies first came to light when it received a request from a Haryana government department to close its account and transfer funds to another bank. During the process, the bank observed differences between the amount mentioned in the request and the actual balance in the account.
From 18 February onwards, other Haryana government entities also engaged with the bank regarding their accounts. The bank said further differences were observed between the balances recorded in its systems and those cited by the respective government entities.
Based on its preliminary internal review, the bank said the matter is confined to a specific group of government-linked accounts within the Haryana government that were operated through the Chandigarh branch. It clarified that the issue does not extend to other customers of the branch.
"The aggregate amount under reconciliation across the identified accounts at the abovementioned Branch is approximately Rs 590 crore," the bank said in its filing. "The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature."
It added that the financial impact would be determined after receipt of further information, validation of claims and recoveries, including lien marking of balances in fraudulent beneficiary accounts maintained with other banks, liabilities of other entities involved in the transactions, and the outcome of the legal recovery process.
The bank has placed four suspected officials under suspension pending investigation and said it would pursue strict disciplinary, civil, and criminal action against employees and any external individuals found responsible.
A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds was convened on 20 February to review the matter. The Audit Committee and the Board of Directors were also informed on 21 February.
The bank said it is in the process of appointing an independent external agency to conduct a forensic audit. Its statutory auditors have been notified. The lender has also filed a complaint with the police and said it would fully cooperate with investigating authorities. It has also sent recall requests to certain beneficiary banks to mark a lien on balances in suspicious accounts held with them.
IDFC First Bank on Saturday disclosed that it has identified a suspected fraud involving approximately Rs 590 crore at its Chandigarh branch, linked to certain Haryana government accounts.
In a regulatory filing to the stock exchanges dated 21 February, the bank said it had conducted a preliminary internal assessment after receiving communication from a department of the Haryana government.
Also read: Dip buyers have vanished: Bitcoin falls 40% from peak, its biggest support suddenly missing
The private lender said discrepancies first came to light when it received a request from a Haryana government department to close its account and transfer funds to another bank. During the process, the bank observed differences between the amount mentioned in the request and the actual balance in the account.
From 18 February onwards, other Haryana government entities also engaged with the bank regarding their accounts. The bank said further differences were observed between the balances recorded in its systems and those cited by the respective government entities.
Based on its preliminary internal review, the bank said the matter is confined to a specific group of government-linked accounts within the Haryana government that were operated through the Chandigarh branch. It clarified that the issue does not extend to other customers of the branch.
"The aggregate amount under reconciliation across the identified accounts at the abovementioned Branch is approximately Rs 590 crore," the bank said in its filing. "The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature."
It added that the financial impact would be determined after receipt of further information, validation of claims and recoveries, including lien marking of balances in fraudulent beneficiary accounts maintained with other banks, liabilities of other entities involved in the transactions, and the outcome of the legal recovery process.
The bank has placed four suspected officials under suspension pending investigation and said it would pursue strict disciplinary, civil, and criminal action against employees and any external individuals found responsible.
A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds was convened on 20 February to review the matter. The Audit Committee and the Board of Directors were also informed on 21 February.
The bank said it is in the process of appointing an independent external agency to conduct a forensic audit. Its statutory auditors have been notified. The lender has also filed a complaint with the police and said it would fully cooperate with investigating authorities. It has also sent recall requests to certain beneficiary banks to mark a lien on balances in suspicious accounts held with them.