IDFC First Bank Pays Rs. 645.20 Crores To Settle Claims Tied To Suspected Fraud.

Mumbai; March 2026: IDFC First Bank vide a press release a few while ago has confirmed that they have paid Rs. 645.20 Crores ($70.18 million) ​to settle claims related to ‌a suspected fraud involving accounts of entities related to the northern state of ​Haryana.

Earlier on February 22nd this year, the bank had announced that it was investigating a suspected fraud of Rs. 650 Crores by some employees involving accounts of local government entities and that the bank had alerted the police. In a statement to the Bombay Stock Exchange, IDFC First had then said it had observed discrepancies of Rs. 590 Crores billion rupees in accounts of some entities of the Haryana state government.

The Mumbai-based midsize private lender had said it had suspended four employees of the branch in the city of Chandigarh pending investigation of the “incident involving unauthorised and fraudulent activities”. The bank, which attracted investments from the likes of Warburg Pincus and Abu Dhabi Investment Authority last year, said it would appoint an independent agency to probe the incident and had filed a police complaint. The discrepancies were spotted when the government entities requested the closure of accounts and the amounts claimed by the two sides did not match, the bank said.

Today, while addressing media houses, IDFC Bank has reiterated that:

• It ​has paid Rs. 645.20 Crores, which is more than its initial estimate of Rs. 590 Crores.

• The updated claims are for the ​same incident and no new ​material claims have emerged.

• Reconciliation of all relevant accounts at the branch has been completed, and no further discrepancies has been found.

• Bank ​anticipates growth ​in ⁠deposits and loans broadly in line with past trends.

• There were no ​other ⁠pending claims and that no other claims have been received across ⁠the ​country since February ​25, 2026.

Earlier, on February 22nd, Haryana Chief Minister Nayab Singh Saini told the state legislative assembly the discrepancies were first detected in January, according to a statement. The government instructed the bank to close the accounts and transfer the funds along with interest to another lender, but IDFC First did not do so, Saini said, while further stating that IDFC Bank was late in taking up the matter.

The instructions were issued again at the end of January, after which “more serious” discrepancies were detected in February, when inconsistencies were found between the documents provided by the bank and government records, Saini said.

The bank accounts saw multiple transactions without state approval over the past three months, the minister said, without providing exact details on the number of accounts or the quantum of funds moved.

On 18th February, the state finance department ordered the closure of all accounts held with IDFC First Bank, according to the statement. Haryana has referred the matter to the State Vigilance & Anti‑Corruption Bureau for investigation, Saini said.

“The Bank will make necessary payments as applicable to the Departments of Government of Haryana. Together with the support of (the) Government of Haryana and the Law Enforcement Agencies, we will bring the perpetrators to Book”, a spokesperson for IDFC First Bank said in response.

Another lender, AU Small Finance Bank, has also been dropped from the list of banks that operate Haryana government accounts, the government said, without giving a reason. AU Small Finance has acknowledged the receipt of queries from the state government but has ruled out fraud.

Team Maverick.