IDFC First Bank shares crashed over 18% after a ₹590 crore fraud surfaced at its Chandigarh branch involving Haryana government-linked accounts
IDFC First Bank Stock Falls 18% After ₹590 Crore Fraud in Chandigarh branch (Source: Instagram)
IDFC First Bank ₹590 Crore Fraud: Shares of IDFC First Bank witnessed a sharp sell-off on Monday after the bank disclosed a major fraud at its Chandigarh branch. Around 10 am, the stock plunged 18.39% on the BSE, trading at ₹68.19 per share.
The fall followed the bank’s confirmation of a ₹590 crore fraud linked to accounts connected with the Haryana Government.
In a regulatory filing, IDFC First Bank said that certain employees at its Chandigarh branch were involved in fraudulent transactions worth ₹590 crore. These transactions were carried out using Haryana government-linked accounts.
The bank has suspended four officials suspected to be involved in the case. The suspension will remain in effect until the internal investigation is completed.
After the fraud disclosure, the Haryana government’s Finance Department issued an official circular on Sunday, February 22. The circular announced that all government accounts maintained with IDFC First Bank and AU Small Finance Bank across the state would be immediately de-empanelled.
The notification stated that no government funds can be deposited, invested, or transacted through these two private banks. All departments have been directed to transfer balances and close existing accounts.
The circular was sent to all Haryana government departments, along with public, private, and small finance banks operating in the state.
IDFC First Bank said it would take strong action against those responsible. In its statement, the bank said,
“Bank will take strict disciplinary, civil and criminal action against guilty employees and other external parties, as per applicable law.”
The bank has filed a complaint with police authorities and has sent recall requests to beneficiary banks, asking them to lien-mark balances in accounts identified as suspicious.
The lender is also in the process of appointing an independent external agency to conduct a forensic audit to fully examine the case.
On the ₹590 crore fraud at IDFC First Bank, RBI Governor Sanjay Malhotra said, “As a matter of policy, we do not comment on any individual bank or regulated entity. We are monitoring the developments. There is no system-related issue involved.”
#WATCH | Delhi | On Rs 590 cr fraud at IDFC First Bank, RBI Governor Sanjay Malhotra says, "As a policy, we do not comment on any individual bank or regulated entity. We are watching the development. There is no systemic kind of issue" pic.twitter.com/lhZaUqXNOj
— ANI (@ANI) February 23, 2026
The fraud was uncovered when the Haryana government requested the closure of its accounts and the transfer of funds to another bank. During this process, officials detected a mismatch between bank records and the balances reported by government departments.
The bank clarified that the fraud was limited to specific government-linked accounts at the Chandigarh branch and confirmed that other customers were not affected.
Disclaimer: The information in this article is based on publicly available data and is provided for informational purposes only. It does not constitute investment advice, and readers should consult a qualified financial advisor before making any investment decisions.
