IDFC FIRST Bank repays Rs 583 crore to Haryana govt after fraud at Chandigarh branch

NEW DELHI: IDFC FIRST Bank has repaid 100 per cent of the principal amount claimed by departments of the Government of Haryana following a fraud incident at one of its branches in Chandigarh, the bank said in an official statement.

The bank said the incident involved certain accounts of departments of the Government of Haryana, where preliminary findings indicated that certain employees of the branch acted fraudulently in clearing forged instruments and payment instructions, potentially in collusion with external parties.

The matter is currently under investigation by the relevant authorities. Despite the investigation being ongoing, the bank said it has immediately honoured the full amount claimed by the concerned government departments.

“The Bank has immediately honored 100 per cent of the principal and interest claimed by the relevant departments of the Government of Haryana, amounting to Rs 583 crore. Final amount may change depending on any further claims or reconciliation”, the company said in its statement.

The bank further stated that, with the full support of the Haryana Government and law enforcement agencies, it is determined to fight the perpetrators of fraud and bring them to justice.

IDFC FIRST Bank highlighted that it remains financially strong and well-capitalised. As of December 31, 2025, the bank is rated AAA by CRISIL for fixed deposits and holds AA+ long-term ratings from CRISIL, ICRA, India Ratings, and CARE.

The bank’s total customer business, including loans and deposits, stood at Rs 5,62,090 crore, registering a growth of 22.6 per cent year-on-year. Asset quality remains healthy, with Gross Non-Performing Assets (GNPA) at 1.69 per cent and Net Non-Performing Assets (Net NPA) at 0.53 per cent.

The bank’s capital adequacy ratio stood at 16.22 per cent, while its CASA ratio was 51.6 per cent. Its Net Interest Margin remained healthy at 5.76 per cent in Q3FY26.

The bank said it is currently in an investment phase and is investing in building products, technology, distribution, branches, ATMs, rural banking, corporate banking, cash management, trade, NRI, credit cards, and other universal banking solutions to become a large and diversified bank in the future.

IDFC First Bank reported a fraud at its Chandigarh branch involving unauthorized transactions in Haryana government accounts. The incident occurred through internal collusion where a few employees allegedly used forged cheques and physical debit instructions to siphon funds to external parties. (ANI)