In an update related to the fraud incident reported earlier this year, IDFC First Bank said it has completed the reconciliation of all relevant accounts at its Chandigarh branch and confirmed that no further discrepancies have been found. The announcement provides partial closure to an incident that had unsettled investors and financial markets in late February.
In a regulatory filing to stock exchanges, the bank disclosed that it has paid a net principal amount of ₹645 crore to claimants. This figure is ₹55 crore higher than its earlier estimate of ₹590 crore.
According to the bank, the additional payout relates to further claims connected to the same incident and the same Chandigarh branch. The bank clarified that the revised amount does not relate to any new fraud case.
“There are no other pending claims,” the bank stated. It also confirmed that no new claims have been received from any entity across the country since February 25, 2026.
The bank further said its deposit base remains stable. Total deposits stood at ₹2,92,381 crore as of February 28, 2026, compared with ₹2,91,133 crore recorded on December 31, 2025. The average Liquidity Coverage Ratio (LCR) for the ongoing quarter through February 28, 2026 was reported at 114%, which the bank described as comfortable.
IDFC First Bank said it expects deposit and loan growth to continue broadly in line with past trends.
The bank also confirmed that it will pursue legal action against those responsible for the fraud in order to recover the losses.
The suspected fraud was first disclosed on February 22, 2026, following a preliminary internal review that uncovered unauthorised and fraudulent transactions carried out by certain employees at the Chandigarh branch. The bank indicated that the employees may have acted in collusion with external individuals or entities.
The irregularity was discovered when a department of the Government of Haryana requested closure of its account and transfer of funds to another bank. During the process, the bank detected a mismatch between its recorded balance and the amount reflected by the department.
Subsequent investigation identified 391 suspect transactions across about 170 accounts, with the total value initially estimated at ₹590 crore.
Despite the fraud investigation still being underway at the time, the bank said it honoured 100% of the principal and interest claimed by the concerned government departments.
To examine the matter in detail, the bank appointed KPMG to conduct a forensic audit. The audit includes transaction reconstruction, identification of employee involvement, analysis of beneficiary accounts and assessment of possible systemic gaps.
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