IDFC First Bank recently reported a fraud of about ₹590 crore at its branch in Chandigarh. The issue involved funds linked to some Haryana government departments. These funds were kept in fixed deposit accounts outside the official treasury system. Early reports suggest that records may have been changed at the branch level.
After the matter came to light, the Haryana Anti Corruption Bureau registered a case and started an investigation. State officials began checking how such a large amount of public money was placed in accounts outside the treasury process. The government has now asked departments to follow stricter rules before opening accounts in private banks.
The bank has said that the problem was limited to the Chandigarh branch. Management explained that it was not a system wide failure but an isolated case. A forensic audit has been given to KPMG. The audit will examine transactions, documents, and internal checks to find out exactly what happened.
The Haryana government has also formed a high level panel to study the matter. Officials want to understand whether proper approvals were taken and who was responsible. Law enforcement agencies are working to identify the people involved and to see how much money can be recovered.
After the fraud was announced, the bank’s share price fell sharply. Investors were worried about the financial impact and possible damage to the bank’s image. Many wanted to know if the loss would affect the bank’s profits and capital position.
During investor calls, bank leaders said that the impact would be manageable. They said that regular banking operations continue as usual and customer services are not affected.
According to the latest quarterly financial results, IDFC First Bank has capital levels above the minimum required by the Reserve Bank of India. The capital adequacy ratio and common equity tier one ratio remain comfortable.
Before the fraud news, the bank had reported steady growth in retail loans and deposits. Retail deposits make up a large part of total deposits, which gives the bank a stable funding base. Net interest income showed growth compared to the previous year. Asset quality indicators such as gross non performing assets remained under control.
The bank has stated that even after considering the ₹590 crore exposure, its capital buffers are strong. There is also some insurance coverage related to employee fraud. This may reduce the final financial loss depending on claim approval.
Authorities in Haryana are examining how government funds were placed outside the treasury system. The state has tightened rules and asked departments to close such accounts if required. Officials have promised strict action against anyone found guilty.
The case has raised questions about public fund safety and internal checks in both banks and government offices. Political leaders have asked for a transparent investigation and quick recovery of funds.
IDFC First Bank has announced that it will strengthen internal controls. Branch level monitoring will be improved. High value accounts will be checked more closely. Internal audits and compliance reviews will be made stronger to prevent similar cases.
Experts believe that while the financial impact appears limited, rebuilding trust may take time. Clear communication and strict action will be important in restoring confidence.
The bank continues to express confidence in its business model. Retail focused growth, steady earnings, and strong capital levels support its position. Management has said that the fraud is limited to one branch and does not affect the overall health of the institution.
The final outcome will depend on the forensic audit and the recovery process. For now, official statements indicate that IDFC First Bank remains financially stable despite the setback.