In a significant regulatory disclosure, IDFC First Bank has reported a suspected fraud involving government-linked accounts at its Chandigarh branch, with an aggregate amount of approximately ₹590 crore currently under reconciliation.
The disclosure was made on February 21, 2026, to both the National Stock Exchange of India and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Discrepancies Flagged During Account Closure Process
According to the bank, the matter came to light following communication from a particular department of the Government of Haryana, which had requested closure of its account and transfer of funds to another bank. During this process, discrepancies were observed between the amount stated by the department and the balance reflected in the bank’s records.
Subsequently, from February 18, 2026 onwards, other Haryana government entities holding accounts with the bank initiated discussions regarding their respective balances. During these interactions, further differences were detected between the balances recorded in the bank’s systems and those reported by the concerned government entities.
Preliminary Review Indicates Limited Scope
The bank clarified that, based on its preliminary internal review, the issue appears to be confined to a specific group of government-linked accounts operated through its Chandigarh branch. Importantly, it stated that the discrepancies do not extend to other customers of the Chandigarh branch.
The total amount currently under reconciliation across the identified accounts is approximately ₹590 crore. However, the bank noted that the final financial impact will be determined after further validation of claims, additional information gathering, and recovery efforts.
Recovery and Legal Action Underway
IDFC First Bank indicated that it is evaluating recovery measures, including:
- Marking liens on fraudulent beneficiary accounts maintained with other banks;
- Assessing liabilities of other entities allegedly involved in the transactions; and
- Initiating appropriate legal recovery proceedings.
The bank also confirmed that four suspected officials have been placed under suspension pending investigation. It stated that strict disciplinary, civil, and criminal action will be pursued against employees and any external individuals found responsible, in accordance with applicable laws.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed entities to promptly inform stock exchanges about material events.
The development is likely to draw regulatory and investigative scrutiny, particularly given the involvement of government-linked accounts and the substantial quantum under reconciliation.
Further updates are expected once the internal investigation and reconciliation process are completed.
