New Delhi: IDFC First Bank on Saturday disclosed that it has identified a suspected fraud of approximately Rs 590 crore at its Chandigarh branch, involving certain accounts linked to the Haryana government.
In a regulatory filing, the private lender said it initiated a preliminary internal assessment after receiving communication from a department of the Haryana government.
The discrepancies surfaced when a Haryana government department requested the closure of its account and the transfer of funds to another bank. During the process, bank officials noticed a mismatch between the amount mentioned in the transfer request and the balance available in the account.
From February 18 onwards, other Haryana government entities also contacted the bank regarding their accounts. The bank observed further differences between the balances recorded in its systems and the figures cited by the respective government departments.
Following its preliminary internal review, the bank stated that the issue remains confined to a specific group of government-linked accounts operated through the Chandigarh branch. It clarified that the matter does not affect other customers of the branch.
The bank said in its filing that it would determine the financial impact after receiving further information, validating claims, and carrying out recoveries.
The bank said it will assess recoveries through lien marking of balances in fraudulent beneficiary accounts maintained with other banks, examine liabilities of entities involved in the transactions, and pursue legal recovery processes.
IDFC First Bank has placed four suspected officials under suspension pending investigation. It said it will initiate strict disciplinary, civil, and criminal action against employees and any external individuals found responsible.
The bank convened a meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Fraud on Friday to review the matter. It informed the Audit Committee and the Board of Directors on Saturday.
