IDFC First Bank settles Chandigarh fraud claims at ₹645 crore; says deposits stable, no further discrepancies found

IDFC First Bank on Tuesday said it has completed the reconciliation of all relevant accounts at its Chandigarh branch and confirmed there are no further discrepancies, bringing partial closure to a fraud incident that rattled investors and 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 ₹55 crore more than its initial estimate of ₹590 crore. The bank said the incremental payout is linked to additional claims received against the same incident and the same branch, and is not connected to any new incident.

“There are no other pending claims,” the bank stated, adding that no fresh claims have been received from any entity across the country since February 25, 2026.

Also Read: IDFC ‘fraud’ may singe other private banks too: Low-cost accounts at risk

The bank also confirmed that its total deposit balance has remained stable at ₹2,92,381 crore as of February 28, 2026, compared to ₹2,91,133 crore as of December 31, 2025. The average Liquidity Coverage Ratio (LCR) for the ongoing quarter through February 28, 2026 stood at 114%, which the bank described as comfortable. It said it anticipates growth in deposits and loans broadly in line with past trends.

The bank said it will continue to pursue legal action against those responsible to recover its dues.
IDFC First Bank first disclosed the suspected fraud on February 22, 2026, after a preliminary internal assessment identified unauthorised and fraudulent activities carried out by certain employees at its Chandigarh branch, potentially in collusion with external individuals or entities. The discrepancy came to light after a Haryana government department requested closure of its account and transfer of funds to another bank, during which the bank found a mismatch between its recorded balance and the amount reflected by the department.

Investigators identified 391 suspect transactions across approximately 170 accounts, totalling ₹590 crore. Despite the investigation being ongoing at the time, the bank immediately honoured 100 per cent of the principal and interest claimed by the relevant departments of the Government of Haryana. The bank appointed KPMG to conduct a forensic audit covering transaction reconstruction, employee involvement, beneficiary account analysis, and systemic gaps.