MONEY
IDFC First Bank reports Rs 590-cr fraud in some accounts of Haryana government
- IBJ Bureau
- Feb 23, 2026
IDFC First Bank has disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government with the private sector lender.
In a regulatory filing made in the wee hours of Sunday, IDFC First Bank has said that it has disclosed the matter to the banking regulator and also filed a police complaint.
"Prima facie, unauthorised and fraudulent activities have been carried out by certain employees at a particular branch in Chandigarh in a specific set of Haryana State government accounts and potentially involving other individuals, entities and counterparties,” IDFC First Bank’s filing said.
At present, it has estimated the fraud size at Rs 590 crore and added that a “reconciliation exercise” will determine the final amount based on receipt of further information, validation of claims and recoveries of any nature.
Providing details of the fraud, the bank has said that a Haryana government department had been banking with IDFC First Bank, and the lender had received a request for a closure and balance transfer to another bank on an undisclosed date.
"In the process, certain discrepancies were observed in the amount mentioned vis-a -vis the balance in the account,” it has said, adding that similar issues were observed in other accounts of Haryana government entities, which engaged with the bank from February 18 onwards.
IDFC First Bank has added that a preliminary internal review has been conducted, and the matter is “confined to a specific group of government-linked accounts within (the) Haryana government” operated through the said branch in Chandigarh” and stressed that it does not extend to other customers of the Chandigarh branch.
Four executives working for IDFC First Bank have been placed under suspension, pending investigation, the bank has said, assuring strict disciplinary, civil and criminal action against the employees and other external individuals responsible.
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