Discrepancies linked to Haryana government accounts
India’s IDFC First Bank has launched an internal investigation into a suspected fraud involving approximately $65 million, tied to accounts associated with government entities in Haryana state.
In a disclosure to the Bombay Stock Exchange, the Mumbai-based private lender said it identified discrepancies totaling about 5.9 billion rupees in certain accounts connected to local state bodies. The issue came to light when those entities requested account closures and the balances claimed by both sides failed to align.
Employees suspended, police notified
The bank confirmed that four employees at its Chandigarh branch have been suspended pending the outcome of the investigation. The institution described the matter as involving unauthorized and fraudulent activities.
IDFC First stated that it has filed a police complaint and notified law enforcement authorities. It also plans to appoint an independent external agency to conduct a detailed probe into the case.
Officials from the Haryana state government and local police had not publicly responded to requests for comment at the time of reporting.
Financial context and investor backdrop
The development comes as IDFC First Bank continues to expand its footprint within India’s competitive banking landscape. The lender attracted investments last year from global financial groups including Warburg Pincus and Abu Dhabi Investment Authority.
In its most recent quarterly results, the bank reported a profit of roughly $55.5 million. The alleged fraud amount therefore represents a significant multiple of its latest quarterly earnings, underscoring the financial sensitivity of the investigation.
The bank has not yet indicated whether it expects a material impact on capital ratios or future earnings, pending the completion of the independent review.
