IDFC First Bank Settles Rs 645 Crore Claims Following Chandigarh Branch Fraud
Synopsis
In a significant development, IDFC First Bank has settled claims totaling Rs 645 crore related to a fraud at its Chandigarh branch, surpassing initial estimates. The bank has confirmed no further discrepancies and is taking steps to recover losses from the fraud perpetrators.
Key Takeaways
IDFC First Bank has settled Rs 645 crore in claims linked to a fraud incident.
Initial estimates were lower by Rs 55 crore.
No new discrepancies have been reported since February 25, 2026.
The bank is taking action against fraud perpetrators.
Deposit base remains stable at Rs 2,92,381 crore.
New Delhi, March 10 (NationPress) IDFC First Bank announced on Tuesday that it has disbursed Rs 645 crore in claims associated with the fraudulent activities at its Chandigarh branch. This figure exceeds the bank's earlier estimate by approximately Rs 55 crore, while confirming that no additional discrepancies have been detected.
According to an exchange filing by IDFC First Bank, "In contrast to the preliminary principal estimate of Rs 590 crore, the bank has received claims and remitted a net principal amount of Rs 645 crore."
The claims are related to the same incident and branch, ruling out any new occurrences, the statement added. The bank has completed a thorough reconciliation of all relevant accounts, with no claims reported nationwide since February 25, 2026.
"The bank has made these payments to the affected clients in accordance with our commitment to ensuring client satisfaction," the statement emphasized.
Furthermore, the bank is actively pursuing legal actions against the individuals responsible for the fraud to recover its losses.
IDFC First Bank reported that its deposit base remains robust at Rs 2,92,381 crore as of February 28, up from Rs 2,91,133 crore at the end of December.
"We express our gratitude to our customers for their understanding, as this incident is isolated to one branch in Chandigarh," the bank stated. It also noted that its average liquidity coverage ratio is comfortably positioned at 114 percent for the current quarter, with expectations for continued growth in both deposits and loans in line with historical trends.
Previously, the bank identified a fraud involving Rs 590 crore in Haryana government accounts, implicating certain employees. A forensic audit has been commissioned from KPMG, with the final report anticipated in four to five weeks. Additionally, four officials have been suspended pending the investigation.
As a result of the incident, the Haryana government has removed IDFC First Bank and AU Small Finance Bank from its panel for government business with immediate effect.
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Point of View
The broader implications for public trust in banking institutions cannot be overlooked.
NationPress
7 Aug 2026
Frequently Asked Questions
What was the total amount paid by IDFC First Bank in claims?
IDFC First Bank paid a total of Rs 645 crore in claims related to the fraud at its Chandigarh branch.
Did IDFC First Bank find any new discrepancies after the claims?
No, IDFC First Bank confirmed that no further discrepancies have been found since the incident.
What measures is the bank taking against the fraud perpetrators?
The bank is pursuing legal actions to recover losses from those responsible for the fraud.
How has the fraud incident affected the bank's deposit base?
IDFC First Bank reported a stable deposit base of Rs 2,92,381 crore as of February 28, showing resilience despite the incident.
What actions were taken by the Haryana government following the fraud?
The Haryana government de-empanelled IDFC First Bank and AU Small Finance Bank for government business with immediate effect.
