Fraud flagged at Chandigarh branch
IDFC First Bank has flagged a suspected fraud of around Rs 590 crore at its Chandigarh branch, involving accounts linked to the Haryana government. The bank disclosed the matter in a statement, indicating that irregularities were detected in transactions connected to these accounts.
The lender did not provide details on the nature of the transactions, the period during which the suspected fraud occurred, or the specific departments or entities associated with the accounts. It also did not name any individuals.
Investigation initiated, staff suspended
IDFC First Bank said it has initiated an investigation after identifying the suspected fraud. As part of immediate internal action, employees who are suspected to be involved have been placed under suspension, according to the statement.
The bank did not specify how many employees have been suspended or what roles they held at the branch. It also did not state whether the matter has been referred to law enforcement agencies or regulators.
Bank signals internal action
In its statement, the lender focused on steps being taken after the detection, including the launch of an investigation and action against staff members under suspicion. No further information was shared on potential recovery of funds, possible impact on customers, or any operational changes at the branch.
The development draws attention to banking controls around high value government linked accounts and the monitoring of transactions routed through branch operations.
IDFC First Bank has not announced any additional updates beyond confirming the suspected amount and the ongoing probe.