IDFC First Bank reports Rs 590 crore fraud in Haryana government accounts
Times of India
by MAYUR SHETTYFebruary 22, 2026
AI-Generated Deep Dive Summary
IDFC First Bank reported a significant financial discrepancy of Rs 590 crore in deposits held on behalf of the Haryana Government at its Chandigarh branch. The bank identified four employees as suspects and suspended them pending an investigation. This revelation came after the state government directed departments to close accounts with private banks, including IDFC First Bank and AU Small Finance Bank, effective February 18, 2026. The move was made following suspected financial irregularities linked to the Chandigarh branch handling Haryana government funds.
The bank informed its statutory auditors, regulators, and stock exchanges under SEBI’s Listing Regulations. It also initiated a forensic audit and sent recall requests to beneficiary banks to lien-mark suspicious balances. The issue, according to the bank, appears confined to specific Haryana Government-linked accounts at the Chandigarh branch, with an aggregate reconciliation gap of Rs 590 crore.
The eventual impact on IDFC First Bank will depend on recoveries from suspicious accounts, legal proceedings, and liabilities involving other entities. The Haryana Government’s directive to shift government funds to nationalised banks only reflects concerns over financial security and compliance with fund-parking guidelines.
This case underscores the importance of robust internal controls and regulatory oversight in safeguarding public money. It also highlights the broader implications for banking sector accountability and trust, particularly in India’s financial ecosystem. The incident serves as a cautionary tale for ensuring transparency and preventing similar discrepancies in government and private banking transactions.
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Originally published on Times of India on 2/22/2026