In a decisive move amid an ongoing investigation into alleged fraud at its Chandigarh branch, IDFC First Bank has fully settled its dues to the Haryana government. The bank disbursed a total of ₹583 crore, covering both principal and interest, to affected state departments. This payment, confirmed in an official statement released on Tuesday, underscores the bank’s unwavering commitment to customer trust and operational transparency.
Preliminary inquiries revealed that certain branch employees colluded with external parties to process fraudulent documents and payment instructions. This misconduct inflicted financial losses on Haryana’s government departments. While probes by relevant authorities and law enforcement continue, the bank has pledged stringent actions against all implicated parties upon conclusion of the investigation.
Despite the probe, IDFC First Bank expedited the full reimbursement as per the government’s claims. The statement noted that while final adjustments could arise from additional claims or settlements, the current obligations stand completely fulfilled. Haryana government officials commended the bank’s prompt response, professionalism, and accountability, with a spokesperson highlighting it as a benchmark for financial institutions.
Reaffirming its robust financial health, the bank pointed to its strong capitalization as of December 31, 2025. CRISIL awarded a triple ‘A’ rating to its fixed deposits, complemented by double ‘A plus’ long-term ratings from CRISIL, ICRA, India Ratings, and CARE. Customer business, encompassing loans and deposits, surged to ₹5,62,090 crore, reflecting a robust 22.6% year-on-year growth. This development not only resolves immediate concerns but also reinforces public confidence in the bank’s governance standards.