IDFC First Bank has appointed KPMG to initiate an independent forensic audit into the incident and suspended those involved.
In an analysts call on Monday, the bank’s management stated that the discrepancy found was Rs 490 crore and it further traced discrepancy of Rs 100 crore taking the total impact to Rs 590 crore.
“We have put out this number as we could best assess at this point of time, but we feel that the number is broadly appropriate to the, current situation. We don’t anticipate this to broadly move from here on to a great extent. It could be a small. As we sort of go through the through the process, maybe these numbers could slightly change. Again, want to assure that the bank is well capitalized.” The bank’s management said in the analyst call.
The bank’s management also clarified that no member of its top leadership was involved in the fraud.
“So this looks to us on the basis of the work we’ve done clearly a case of an employee fraud. So, this is a serious matter for us. We have run this bank now for 10 years and we have never seen an instance of this order of magnitude. Certainly not,” V Vaidyanathan, MD & CEO, IDFC First Bank said.
“We will spare no one (involved in the incident). The bank is now fundamentally in a strong position,” he said.
“On the basis of that strong strength, we feel that this is this is an incident that will pass through the Profit and loss account. But, this incident will not pass through our memory because this is a very significant event for us,” Vaidyanathan said.
IDFC First Bank’s management said the deposits of the Haryana government constitute around 0.5 per cent of the bank’s overall deposits of about Rs 3.8 lakh crore. Since the incident, around Rs 200 crore outflow has taken place from the Haryana government’s deposits.
The state-government and central government deposits constitute 8–10 per cent of the bank’s deposit base, they added.
