IDFC FIRST Bank reimburses ₹583 crore to Haryana Government within a day following Chandigarh fraud case

IDFC FIRST Bank promptly transferred ₹583 crore to various departments of the Haryana Government within 24 hours, settling both the principal and interest amounts following a fraudulent incident at its Chandigarh branch, the bank announced on Tuesday.

Details of the Fraudulent Incident

Preliminary investigations by the bank indicated that certain branch employees allegedly facilitated the clearing of forged financial instruments and payment instructions, potentially in collaboration with external parties. This matter is currently under investigation by the appropriate authorities.

An internal review determined that the issue was limited to specific government-linked accounts of the Haryana Government managed through the Chandigarh branch, and did not affect any other bank customers at that location.

Bank’s Response and Commitment

Despite ongoing inquiries, the bank honored the full claimed amount of ₹583 crore immediately, reflecting its commitment to the affected government departments.

Representatives of the Haryana Government praised the bank’s ethical stance, swift response, and professional handling of the situation.

The bank also confirmed its intention, with support from the Haryana Government and law enforcement agencies, to pursue legal action against those responsible to ensure accountability.

Financial Standing and Background

The bank reported a capital adequacy ratio of 16.22 percent as of December 31, 2025, and customer business totaling ₹5,62,090 crore, representing a 22.6 percent growth year-on-year.

Actions Taken Following Discovery

Earlier, the bank suspended four employees following the discovery of fraudulent activities involving approximately ₹590 crore linked to certain Haryana government accounts managed by the Chandigarh branch, according to an official stock exchange statement.

The filing noted that the total amount under reconciliation was around ₹590 crore and that the impact would be further assessed based on:

  • Additional information
  • Validation of claims
  • Recoveries, including liens on fraudulent beneficiary accounts in other banks
  • Liabilities of involved entities
  • Legal recovery process

Investigations into this case remain ongoing, focusing on the affected Haryana government department accounts handled at the Chandigarh branch.

Key Takeaways

  • IDFC FIRST Bank reimbursed ₹583 crore to Haryana Government within 24 hours of the fraud discovery.
  • Fraud involved forged financial instruments cleared by certain Chandigarh branch employees.
  • The issue was confined to specific Haryana government accounts; other customers were not affected.
  • The bank has suspended four employees and is pursuing legal action against responsible parties.
  • Financial impact and recoveries are being continuously assessed as investigations proceed.