Mumbai (Maharashtra) [India], February 24 (ANI): IDFC FIRST Bank has credited 583 crore to departments of the Government of Haryana within 24 hours, honouring 100 per cent of the principal and interest claimed following a fraud incident at its Chandigarh branch, the bank said on Tuesday.

According to a statement issued by the bank, preliminary findings indicate that certain branch employees allegedly acted fraudulently in clearing forged instruments and payment instructions, potentially in collusion with external parties. The matter is currently under investigation by the relevant authorities.'Based on the preliminary internal review conducted, the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch,' the statement read.

Despite the ongoing probe, the bank said it immediately honoured the full amount claimed by the concerned Haryana government departments, amounting to 583 crore.

The departments of the Haryana government have thanked and appreciated the bank's principled approach, prompt action and professional conduct in addressing the issue.

The bank stated that, with the full support of the Haryana government and law enforcement agencies, it is determined to take action against those responsible for the fraud and bring the perpetrators to justice.

Highlighting its financial position, the bank said it remains well-capitalised, with a capital adequacy ratio of 16.22 per cent as of December 31, 2025, and total customer business of 5,62,090 crore, reflecting a year-on-year growth of 22.6 per cent.

The incident pertains to certain accounts of Haryana government departments maintained at the bank's Chandigarh branch. Further investigation is underway.

Earlier, IDFC FIRST Bank had suspended four employees after it discovered fraudulent activity involving approximately Rs 590 crore in certain Haryana government accounts at its Chandigarh branch, the bank said in its official stock exchange filing.

The bank said in its filing that, 'The aggregate amount under reconciliation across the identified accounts at the abovementioned Branch is approximately 590 crore. The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature, including those made through the process of marking lien on fraudulent beneficiary accounts maintained with other Banks, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process.' (ANI)