IDFC First Bank Concludes Chandigarh Fraud Settlement at Rs 645 Crore
In a significant development, IDFC First Bank announced on Tuesday that it has successfully settled fraud claims related to its Chandigarh branch, with the total payout reaching Rs 645 crore. This amount surpasses the initial principal estimate of Rs 590 crore by Rs 55 crore, marking a notable resolution in the ongoing case.
Background of the Fraud Incident
The private sector bank had previously disclosed a Rs 590 crore fraud last month, which was committed by certain employees and other individuals at a specific branch in Chandigarh. This fraudulent activity was linked to a set of Haryana state government accounts, raising concerns about internal controls and oversight.
Details of the Settlement and Claims
In a regulatory filing, IDFC First Bank clarified that the Rs 645 crore settlement pertains solely to the same incident and branch, with no new fraudulent activities reported. The bank emphasized that it has received and paid all claims, and there are no pending issues from this branch or any other entities across the country since February 25, 2026.
Key points from the filing include:
- The net principal amount paid is Rs 645 crore, exceeding the original estimate by Rs 55 crore.
- All relevant accounts have been reconciled, with no further discrepancies identified.
- The bank will continue to pursue legal actions against the perpetrators to recover the dues.
Financial Stability and Future Outlook
Despite the fraud settlement, IDFC First Bank reported stable financial health. The total deposit balance stood at Rs 2,92,381 crore as of February 28, 2026, showing a slight increase from Rs 2,91,133 crore as of December 31, 2025. The bank anticipates continued growth in deposits and loans, aligning with past trends, which signals confidence in its operational resilience.
Market Response
Shares of IDFC First Bank were trading at Rs 67.17 on the BSE, reflecting a 0.61 percent increase over the previous close. This positive market reaction suggests investor optimism following the resolution of the fraud claims and the bank's reassurances about its financial stability.
This settlement underscores the bank's commitment to addressing internal issues and maintaining transparency in its operations, which is crucial for restoring trust among stakeholders and customers.
