Big update in IDFC First Bank Rs 645 crore fraud case

IDFC First Bank on Tuesday said it has completed reconciliation of all relevant accounts at its Chandigarh branch and found no further discrepancies, offering partial closure to a fraud case that had unsettled investors in February.

In a regulatory filing, the lender said it has paid a net principal amount of Rs 645 crore to claimants. This is Rs 55 crore higher than the bank’s initial estimate of Rs 590 crore disclosed earlier.

The bank clarified that the additional payout is linked to extra claims received for the same incident and the same branch, and is not related to any new fraud case.

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“The incremental principal payout against the claims is Rs 55 crore more than the original estimates. These claims pertain to the same incident linked to the same branch and not a new incident,” the bank said.

It also confirmed that no further claims remain pending.

No new claims received since February 25

The bank said it has not received any fresh claims from any entity across the country since February 25, 2026.

It added that reconciliation of the accounts involved in the case has now been completed and no additional discrepancies have been identified at the Chandigarh branch.

The bank reiterated that the payments were made in line with its “principled approach of making good client payments.” It also said it will continue to pursue legal action against the perpetrators to recover its dues.

Deposits and liquidity remain stable

Despite the fraud incident, the bank said its deposit base has remained stable.

Total deposits stood at Rs 2,92,381 crore as of February 28, 2026, compared with Rs 2,91,133 crore as of December 31, 2025.

The lender also said its average Liquidity Coverage Ratio (LCR) for the ongoing quarter until February 28 stood at 114 per cent, which it described as comfortable.

The bank expects deposit and loan growth to continue broadly in line with past trends.

How the fraud came to light

The suspected fraud was first disclosed on February 22, 2026 after the bank’s preliminary internal assessment found unauthorised and fraudulent activities carried out by certain employees at its Chandigarh branch, potentially in collusion with external individuals or entities.

Bank informed earlier that the discrepancy came to light when a department of the Government of Haryana requested the closure of its account and transfer of funds to another bank.

During the process, the bank found a mismatch between the balance recorded in its books and the amount reflected by the government department, triggering a deeper review.

391 suspect transactions identified

In an exchange filing, the bank noted that the internal investigation identified 391 suspect transactions across around 170 accounts, with the initial discrepancy estimated at Rs 590 crore.

Even as the probe was underway, the bank said it honoured 100 per cent of the principal and interest claimed by the relevant departments of the Government of Haryana, to ensure that the affected clients were fully compensated.

Forensic audit by KPMG

To investigate the matter in detail, the bank appointed KPMG to carry out a forensic audit.

IDFC First Bank share price

At around 12:42 PM, the stock was trading at Rs 66.85, up 0.13 per cent.