IDFC FIRST Bank on Saturday disclosed a suspected fraud of around ₹590 crore at one of its branches in Chandigarh, saying the irregularities were detected during a reconciliation exercise involving a set of government-linked accounts operated by departments of the Haryana government.
In a regulatory filing to stock exchanges, the bank said the discrepancies came to light after it received a request from a department of the Haryana government seeking closure of its account and transfer of funds to another bank. During the process, the bank noticed a mismatch between the amount mentioned in the request and the balance reflected in the account.
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According to the filing, further concerns emerged from February 18, 2026, when other Haryana government entities approached the bank regarding their respective accounts. “Differences were observed between the balances in the accounts and the balances as mentioned by the said Haryana Government entities,” the bank said.
Fraud confined to specific government-linked accounts
As reported by The Hindu, the lender clarified that a preliminary internal review indicates the matter is limited to a specific group of Haryana government–linked accounts maintained at the Chandigarh branch. "The issue does not extend to other customers of the Chandigarh branch," the bank noted, seeking to reassure depositors and investors.
The aggregate amount under reconciliation across the identified accounts is estimated at approximately ₹590 crore. The final financial impact, the bank said, will depend on further verification, validation of claims, and recoveries, including funds that may be secured through lien marking on beneficiary accounts held with other banks.
Following the discovery, the bank has placed four officials under suspension pending investigation. It also said it would pursue "strict disciplinary, civil and criminal action" against employees and external individuals found responsible, in accordance with applicable law.
Forensic audit ordered, board committees informed
IDFC FIRST Bank said its Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds met on February 20, 2026, to review the matter. The Audit Committee and the Board of Directors were subsequently briefed on February 21.
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The bank has decided to appoint an independent external agency to conduct a forensic audit and has already sent recall requests to certain beneficiary banks, asking them to mark liens on balances in suspicious accounts.
The disclosure comes amid heightened scrutiny of banking irregularities, even as a recent report by the Reserve Bank of India pointed to a rise in the value of bank frauds despite a decline in the number of reported cases.
