According to an official statement released by IDFC First Bank on February 22, the unauthorized transactions were identified after discrepancies arose during a routine account closure request from a Haryana government department. The bank noted that the differences in account balances triggered an internal review, which uncovered potential fraudulent activities carried out by certain branch employees.
The bank clarified that, based on preliminary findings, the fraud is currently limited to specific government-linked accounts and does not affect other account holders at the Chandigarh branch. “The aggregate amount across the identified accounts so far stands at ₹590 crore,” the statement said, adding that the exact impact will be determined after validation of claims and further investigation.
Action Taken by the Bank
In response to the discovery, IDFC First Bank has suspended four suspected employees and placed the matter before the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF). The bank also plans to appoint an independent external agency to conduct a forensic audit of the transactions.
The bank emphasized its commitment to pursue “strict disciplinary, civil, and criminal action” against all employees and external individuals responsible, in accordance with applicable law.
Market Impact
Despite the fraud revelation, IDFC First Bank’s stock closed 0.72% higher at ₹83.56 on the BSE during the last trading session on February 20. Analysts note that the limited scope of the incident, restricted to specific government accounts, helped mitigate panic among general investors.
Context and Related Developments
This incident underscores the importance of robust internal controls in banking operations, especially when handling government-linked accounts.