IDFC First Bank pays back 100% of Haryana Govt claims, post fraud incident

IDFC First Bank Ltd said it has paid out 100 per cent of the principal and interest to the relevant departments of Haryana Government as claimed, which works out to a net amount of Rs 583 crore, even as an investigation is under way over incident of fraud at one of its branches.

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IDFC First Bank said it 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.

On Sunday, IDFC First Bank based on the preliminary internal review conducted it detected a fraud to the tune of Rs 590 crore at its branch in Chandigarh pertaining to government-linked accounts within Haryana Government. Four suspected officials have been placed under suspension pending investigation, it added.

IDFC First Bank Ltd also appointed KPMG to initiate an independent forensic audit

“Our Unit Economics are strong and we are a growing bank. Our Net Interest Margin is 5.76 per cent in Q3FY26. Currently, this is not entirely reflecting in the net profit as the bank is in investment stage in building out products, technology, distribution, branches, ATM, rural Banking and other such universal banking solutions to be a large, diversified bank of the future, IDFC First said.

“The last few years have been a phase of building the foundation blocks, and the next few years we expect the operating leverage to reflect in the earnings,” it said.

We are building a world-class bank in India with strong governance and ethics and will emerge stronger from this incident, IDFC First assured.

“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, had said in a analyst call.

 

 

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