IDFC first bank investigates suspected $65 million fraud in government accounts

Sunday 22 February 2026 - 11:14

By: Sahili Aya

IDFC first bank investigates suspected $65 million fraud in government accounts

India’s private lender IDFC First Bank has launched an internal investigation into a suspected fraud estimated at around $65 million involving accounts linked to government entities. The bank said it has also informed law enforcement authorities as part of its response to the incident.

In a regulatory filing to the Bombay Stock Exchange, the Mumbai-based lender disclosed discrepancies amounting to approximately 5.9 billion rupees in accounts associated with certain entities of the Haryana state government in northern India. The irregularities reportedly came to light when the government bodies sought to close their accounts and the balances presented by both sides failed to reconcile.

The bank confirmed that four employees from its Chandigarh branch have been suspended pending the outcome of the investigation. The case involves what the institution described as unauthorized and potentially fraudulent activities within the branch.

To ensure transparency, the lender said it plans to appoint an independent external agency to conduct a detailed probe into the matter. A formal police complaint has already been filed. Authorities in Haryana had not issued public comments at the time of reporting.

The development comes as India’s banking sector continues to strengthen oversight and risk management frameworks following several high-profile fraud cases in recent years. Financial institutions have increased scrutiny of internal controls, particularly in accounts related to public funds.

Analysts note that swift disclosure and cooperation with regulators are essential to maintaining investor confidence. IDFC First Bank, which has attracted international investment in recent years, emphasized its commitment to governance standards and corrective measures.

The investigation remains ongoing, and further details are expected once the independent review is completed.