IDFC Bank shares on Monday, February 23, fell sharply, hitting the 20 per cent lower circuit at market open, with no signs of abating, the decline continued.
The decline followed the revelation of a 590 Cr fraud at the IDFC Chandigarh branch, triggering investor panic and erasing ₹14,438 crore from the bank’s market capitalisation in a single day.
In a regulatory filing, the bank said the issue surfaced after a Haryana government department requested closure of its account and transfer of funds to another bank. During the process, the bank discovered discrepancies between the amount stated by the department and the balance reflected in its records.
However, the IDFC said in the initial finding of the investigation that these discrepancies are limited to only a few accounts of the Haryana government that operates from Chandigarh, and didn’t impact other customers of the branch.
The Bank said, “Preliminary investigations have revealed that certain employees at the Chandigarh branch carried out unauthorised and fraudulent transactions in certain accounts belonging to the Haryana government. Other individuals or entities may also be involved.”
Four Officials Suspended
According to the bank, this amount of ₹590 crore is currently estimated, and account reconciliation is underway. This amount may change based on further information and potential recoveries. Similar irregularities have been detected in other accounts linked to the Haryana government since February 18th.
The bank clarified that preliminary investigations indicate that the issue is limited to a few government accounts in the Chandigarh branch and has not affected other customers.
Four bank officials have been suspended pending the completion of the investigation. The bank has stated that any employee or outsider found guilty will face strict disciplinary, civil, and criminal action. The matter has also been placed before the board’s special committee, which monitors fraud cases, on February 20, 2026.
Haryana Government Action Against Banks
Following this revelation, the Haryana government on Sunday banned IDFC First Bank and AU Small Finance Bank from handling government business with immediate effect.
According to the circular issued by the Finance Department, no government funds will be deposited, invested or transacted through these banks until further orders.
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