IDFC First Bank Ltd has reported an incident involving alleged unauthorised and fraudulent activities at one of its branches in Chandigarh, potentially impacting a specific group of Haryana government-linked accounts, with an aggregate amount of approximately ₹590 crore under reconciliation.
In a regulatory filing to stock exchanges on Saturday, the bank said the issue came to light after it received a request from a department of the Government of Haryana to close its account and transfer funds to another bank. During the process, discrepancies were observed between the amount mentioned in the request and the balance reflected in the account.
Subsequently, from February 18, 2026 onwards, other Haryana government entities approached the bank regarding their respective accounts. During these interactions, further differences were noted between the balances recorded by the bank and those stated by the government entities.
Following a preliminary internal assessment, the bank said the matter appears to be confined to a specific set of government-linked accounts operated through the Chandigarh branch and does not extend to other customers of the branch.
The total amount currently under reconciliation across the identified accounts is estimated at ₹590 crore. The bank clarified that the final financial impact, if any, will depend on further information, validation of claims, and recoveries. These may include lien markings on suspected beneficiary accounts maintained with other banks, liabilities of other entities involved in the transactions, and legal recovery proceedings.
As part of immediate remedial measures, the bank has suspended four suspected officials pending investigation. It said strict disciplinary, civil, and criminal action will be pursued against employees and external individuals found responsible, in accordance with applicable law.
The Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds met on February 20, 2026, to review the matter. This was followed by meetings of the Audit Committee and the Board of Directors on February 21, 2026, to apprise them of the developments.
The bank is in the process of appointing an independent external agency to conduct a forensic audit. It has also informed its statutory auditors and filed a complaint with the police authorities, pledging full cooperation with investigative agencies.
Additionally, the bank has sent recall requests to certain beneficiary banks to mark liens on balances in suspicious accounts.