The Haryana government has successfully recovered nearly ₹556 crore from IDFC First Bank following the alleged ₹590-crore fraud involving accounts linked to state departments, Chief Minister Nayab Singh Saini said on Tuesday.
Addressing the Haryana Assembly, Saini said the reclaimed amount includes approximately ₹22 crore in interest and was credited back to government accounts within 24 hours of the irregularity coming to light. "The entire amount has been deposited back into our accounts," he said, as quoted by news agency PTI.
This development helped lift IDFC First Bank's shares, which traded higher following the announcement.
3 February 2026
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Shares of the lender were trading in green on February 24, a day after hitting 20% lower circuit. The bank closed 1.33% higher at ₹70.97 from the previous close of ₹70.04.
The previous day's fall wiped off millions from investors' wealth, including Life Insurance Corporation (LIC) and the government of India who are among the bank's top shareholders. There were pending sell orders of 2,152,520 shares during the morning session, with no buyers available, showed exchange data.
The fraud was disclosed by the bank on Saturday night. In a exchange filing, the lender revealed that certain employees at one of its branches in Chandigarh were allegedly involved in unauthorised and fraudulent transactions amounting to ₹590 crore from accounts linked to the Haryana government.
The issue came to light after IDFC First Bank received a request from a department of the government of Haryana to close its account and transfer the funds to another bank. During this process, the bank noticed discrepancies between the amount mentioned in the request and the actual balance in the account.
Investigations so far indicate the involvement of four to five mid and lower-level bank employees in the irregularities.
The CM reportedly said that strict action would be taken against all individuals found responsible, including bank staff and any government officials implicated in the case. To strengthen oversight and prevent similar incidents, the government has constituted a high-level committee led by the Finance Secretary to examine the matter and recommend corrective measures.
The state government had earlier de-empanelled IDFC First Bank and AU Small Finance Bank for government business with immediate effect, according to an official circular. Under this, no government funds will be parked, deposited, invested or transacted through these two institutions.
Following, the fraud announcement, RBI Governor Sanjay Malhotra on Monday said that the central bank is monitoring developments and sees no broader banking system impact.
"Banks have enough capital. Capital adequacy currently stands at 17%, while the regulatory requirement is 11.5%," Malhotra had said, seeking to reassure markets amid concerns that the episode could trigger broader stability worries in the banking system.
