IDFC First Bank share price is expected to remain in focus after the lender disclosed a ₹590 crore fraud at its Chandigarh branch involving accounts linked to the Haryana government.
In a stock exchange filing, the bank said certain employees were involved in fraudulent activities related to government-linked accounts. 4 suspected officials have been suspended pending investigation, and the matter has been reported to the police.
The issue came to light when the Haryana government requested closure of its account and transfer of funds to another bank. During the process, the lender observed discrepancies between the balance recorded in the bank’s system and the amount reported by the government entities.
From February 18, 2026, certain Haryana government entities approached the bank regarding their respective accounts. While reviewing these accounts, inconsistencies were noticed between the balances held with the bank and those reported by the entities.
The bank clarified that the fraudulent activities were confined to a specific group of government-linked accounts operated through the Chandigarh branch. It added that the issue does not extend to other customers of the branch.
IDFC First Bank said 4 suspected employees have been placed under suspension while investigations are ongoing. “The Bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law,” the lender said in its exchange filing.
The lender has also filed a complaint with the police authorities. Additionally, it has sent recall requests to certain beneficiary banks to lien-mark balances in suspicious accounts held with them, in an effort to prevent further movement of funds.
The bank said it is in the process of appointing an independent external agency to conduct a forensic audit. The audit will examine the nature and extent of the fraud and assess any gaps in internal controls.
The lender reiterated that the fraudulent activities were limited to a specific set of government-linked accounts at the Chandigarh branch and do not affect other customers.
The disclosure of the ₹590 crore fraud has drawn investor attention, with the IDFC First Bank share price likely to react to further developments. While the bank has taken swift steps, including suspensions, filing a police complaint and initiating a forensic audit, the outcome of the investigation and potential recovery of funds will remain key factors for the market in the coming days.
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Published on: Feb 23, 2026, 9:52 AM IST
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