IDFC First Bank has said it has transferred Rs 583 crore to the Haryana government after a fraud was found at its Chandigarh branch. The bank said it has paid 100% of the principal and interest to the concerned government departments, even as the investigation is still going on.
In a regulatory filing dated February 24, 2026, the bank informed the National Stock Exchange and BSE about the payment. It referred to its earlier disclosures made on February 21 and February 22 under Regulation 30 of the SEBI Listing Regulations.
The bank said, “Our Bank always upholds the highest principles and standards. We call ourselves a customer-first bank in the way we define our product policies, disclosures, and no fine print banking. We give benefit of doubt to customers in event of difference of opinion.”
It added, “Now was the occasion to stand up and deliver when it truly matters and put our CUSTOMER FIRST principles in action. We are a principle-based bank, and we mean it. We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank.”
According to the filing, the bank has “paid out 100% of the principal and interest to the relevant departments of Haryana Government as claimed, which works out to a net amount of INR 583 crore.” It also said the departments have thanked and appreciated the bank for its “positive approach, professional manner, and speedy and principle-based resolution.”
IDFC First Bank further said it will continue to work with the Haryana government departments and law enforcement agencies. “The Bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies, to pursue actions against the perpetrators of the fraud and look forward to recovering our dues,” it said.
Earlier, Haryana Chief Minister Nayab Singh Saini told the Assembly that the full amount taken from government-linked accounts had been returned within 24 hours.
“A total of Rs 556 crore, including Rs 22 crore of interest, was returned to the government account within 24 hours,” he said.
Saini said initial findings point to the possible role of four to five bank employees. He said strict action would be taken. “No one, whether a bank employee, a private individual, or a government official, will be spared in the case,” he said.
He also told lawmakers that the state’s financial management has become stronger under the present administration and that the money of Haryana’s 2.8 crore citizens is fully accounted for. A high-level committee led by the Finance Secretary has been formed to review the incident and suggest steps to avoid such cases in future.
The matter came to light after IDFC First Bank disclosed Rs 590 crore in fraudulent transactions at its Chandigarh branch in an exchange filing. After this, the state Vigilance and Anti-Corruption Bureau registered an FIR against bank officials, government employees and others under sections of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.
The issue has also led to political reactions. Haryana Congress president Rao Narendra Singh has asked for a CBI probe into the matter.
Chief Minister Saini said that while the bank formally wrote to the government on February 21, the departmental funds had already been moved to a nationalised bank on February 18 along with interest. He added that a large part of the funds had been placed in fixed deposits and that keeping departmental funds with banks has been a normal practice across previous governments.
The investigation into the fraud is still ongoing.
