IDFC First Bank disclosed that it disbursed Rs 645 crore in response to the fraud at its Chandigarh branch, surpassing the initial estimate by Rs 55 crore. The bank clarified that no additional irregularities have been uncovered in connection with the incident.
According to an exchange filing, the bank stated, “Against the initial estimate of principal of Rs 590 crore, the bank has received claims and paid the net principal amount of Rs 645 crore.” The claims are specifically related to the same incident at the Chandigarh branch and not a separate occurrence.
The bank emphasized that a thorough reconciliation of all pertinent accounts has been finalized, with no new claims reported nationwide since February 25, 2026. It further mentioned that the payment to affected clients aligns with its commitment to rectify client payments.
IDFC First Bank affirmed its commitment to pursuing legal actions against the perpetrators to reclaim its outstanding dues. The bank also highlighted that its deposit base stood firm at Rs 2,92,381 crore as of February 28, compared to Rs 2,91,133 crore in December.
“We appreciate our customers’ understanding that this is an isolated incident tied to one branch in Chandigarh,” the bank expressed, noting a comfortable average liquidity coverage ratio of 114% for the current quarter. It anticipates maintaining deposit and loan growth in line with historical patterns.
The bank had previously reported a fraud amounting to Rs 590 crore in Haryana government accounts, involving certain employees. KPMG has been engaged for a forensic audit, with the final report anticipated within four to five weeks. Additionally, four officials have been suspended pending investigation.
Following the incident, the Haryana government immediately removed IDFC First Bank and AU Small Finance Bank from government business dealings.
