IDFC First Bank is currently navigating a significant internal crisis following the discovery of a ₹590 crore fraud at its Chandigarh branch. The incident, disclosed to stock exchanges over the weekend, involves unauthorized activities by bank employees specifically targeting accounts linked to the Haryana government. The discrepancy came to light when a Haryana government department requested to close its account and transfer funds to another lender. During the process, the bank observed a mismatch between the reported book balances and the actual funds present. Since February 18, 2026, multiple other state entities have reported similar inconsistencies in their account statements. The bank has clarified that the breach is confined to a specific group of government-linked accounts and does not affect the broader retail or corporate customer base in Chandigarh. In immediate response, four officials have been suspended, and a police complaint has been filed. To ensure a deep-dive investigation, the bank has appointed KPMG to conduct an independent forensic audit. The scale of the fraud is particularly notable as the ₹590 crore figure exceeds the bank's most recent quarterly net profit of ₹503 crore for Q3 FY26. While the bank reported a healthy 48% year-on-year growth in profits last month, this event places renewed pressure on its internal control frameworks. Market analysts are monitoring the situation closely as the bank works to reconcile the exact amount and pursue recoveries. The lender has already initiated "recall requests" to other banks to lien-mark suspicious beneficiary accounts. Despite the news, the stock showed resilience in the most recent trading session, closing at ₹83.51 on the NSE, up approximately 0.64% before the full extent of the disclosure was processed by the broader market. The bank maintains a strong capital adequacy ratio of 16.22% and a high CASA ratio of 51.6%, providing a significant buffer. However, the incident highlights ongoing challenges in branch-level oversight within the private banking sector. Investors are now looking toward a scheduled conference call for further clarity on the potential impact on future provisions and the timeline for legal recovery. [IDFC First Bank fraud news](https://www.youtube.com/watch?v=6j5vpNBjdnk) This video provides a detailed discussion on the rising trends of banking and digital fraud in India, offering expert context on how such incidents impact the financial ecosystem. http://googleusercontent.com/youtube_content/0