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IDFC First Bank Fraud Probe Widens to 391 Transactions and 170 Accounts

Haryana officials say the diverted government funds were credited back within 24 hours of detection.

Overview

  • The lender disclosed a suspected Rs 590 crore discrepancy tied to Haryana government-linked accounts at its Chandigarh branch and suspended four employees.
  • Investigators are examining 391 transactions across more than 170 beneficiary accounts, with deposits in several accounts already frozen as part of the probe.
  • IDFC First Bank has engaged KPMG for a forensic audit, notified regulators and auditors, and sent recall requests to lien-mark balances in suspicious beneficiary accounts held with other banks.
  • The Haryana government de-empanelled IDFC First Bank and AU Small Finance Bank for state business and referred the case to anti-corruption and police agencies, with officials indicating a Special Investigation Team will be set up.
  • Shares of IDFC First Bank fell about 19–20% in one session, erasing roughly Rs 14,000 crore in market value, as the CEO called the incident isolated and involving staff collusion with external parties.