IDFC First Bank reports potential fraud of ₹590 crore

Private sector IDFC First Bank has reported a potential fraud of ₹590 crore related to its Chandigarh branch, with four suspected officials placed under suspension pending investigation.

The Bank received a request from a government department of the State of Haryana that wished to close its account and transfer funds to another bank. It was during this process that discrepancies were observed in the amount mentioned when compared with the balance in the account.

The bank’s share price was down 13 per cent a day after announcement.

“The impact may be determined based on receipt of further information, validation of claims, recoveries made through the process, liabilities of those involved in the fraudulent transactions, and the legal recovery process,” the bank said in a statement.

The Bank is in the process of appointing an external agency to conduct an independent forensic audit.