IDFC FIRST Bank Reveals Rs 590 Crore Fraud at Chandigarh Branch

IDFC FIRST Bank Limited, a private sector financial institution, has reported a fraudulent activity amounting to Rs 590 crore at its Chandigarh branch. The fraud was identified when discrepancies emerged concerning the balances in accounts linked to the Haryana Government. The bank clarified that the fraud specifically concerns a narrow group of government accounts and does not affect other customers from the Chandigarh branch.

On February 20, 2026, a meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was convened to discuss the fraudulent activities. Subsequently, an Audit Committee and the Board of Directors met on February 21, 2026, to be briefed on the developing situation.

According to a statement issued by the bank, the issues came to light after a request from a specific department of the Haryana Government for account closure and fund transfers. During this process, the bank noted discrepancies between the account balances reported by the Haryana Government and the actual balances in the bank's records.

The bank has taken immediate action by suspending four employees who are suspected of being involved in this activity, pending an investigation. IDFC FIRST Bank stated that it intends to pursue strict disciplinary measures, as well as civil and criminal actions against those deemed responsible for the fraud.

In response to the incident, IDFC FIRST Bank plans to engage an independent external agency to carry out a forensic audit to ensure a thorough investigation of the fraudulent activities. Additionally, the bank has requested that certain beneficiary banks mark suspicious accounts in order to safeguard potential recoveries.

The impact of the fraud may only be fully determined following more information and subsequent actions regarding liabilities and potential recoveries from involved entities. The bank reassured stakeholders that it is committed to addressing the issue proactively and with diligence.