Home / Business and Economy / IDFC First Bank Shares Dip Amid Rs 646 Cr Fraud Probe
IDFC First Bank Shares Dip Amid Rs 646 Cr Fraud Probe
8 Jun
Summary
- CBI searches six locations in a Rs 646 crore fraud case.
- KPMG forensic review confirmed collusion involving bank employees and officials.
- IDFC First Bank has compensated affected government departments.
Shares of IDFC First Bank experienced a nearly 1% decline on Monday, June 8, 2026, following searches conducted by the Central Bureau of Investigation (CBI) at six locations. These searches are part of an ongoing probe into an alleged Rs 646 crore fraud involving government funds from Haryana government departments and the Chandigarh administration.
The CBI's investigation, which included premises linked to senior public servants and a consultancy firm, revealed evidence of collusion between public servants, bank officials, and third parties. A forensic review by KPMG confirmed that the incident stemmed from collusion involving certain branch employees, state government employees, and external parties.
IDFC First Bank reported that the net principal amount of Rs 646 crore was involved in the alleged fraud. The bank has compensated the concerned government departments, including applicable interest, and has recognized this amount in its Q4 FY26 accounts. The bank stated it is a victim of this financial fraud and is cooperating fully with the investigative authorities.
The incident first came to light in February 2026 when the bank discovered alleged fraud by employees at its Chandigarh branch. Discrepancies were found during a review of a request to close an account and transfer funds for a Haryana government department, leading to a significant drop in the bank's share price at that time.
