Rs. 590 crore under scanner: What went wrong at an IDFC First Bank’s Chandigarh branch?

“The aggregate amount under reconciliation across the identified accounts at the above mentioned Branch is approximately ₹590 crore. The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature including those made through the process of marking lien on fraudulent beneficiary accounts maintained with other Banks, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process,” the bank informed the stock exchanges as quoted by The Hindu in its report.

The bank said it received a request from a Department of the Haryana government that asked to close its account and transfer funds to another bank.

“In the process, certain discrepancy were observed in the amount mentioned vis-à-vis the balance in the account,” the bank said in the filing as quoted by The Hindu.

“From February 18, 2026 onwards, certain other Haryana Government entities engaged with the Bank with regard to their respective accounts with the Bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the said Haryana Government entities holding accounts with the Bank,” it said.

“Based on the preliminary internal review conducted, the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch,” it added.

Pending investigation, the bank has reportedly placed four suspected officials under suspension.

“A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was convened on February 20, 2026 and the matter was placed before the Committee,” the bank said.