IDFC FIRST Bank has released an update regarding the issue that occurred at one of its branches in Chandigarh. The bank informed that it has now paid a total principal amount of ₹645 crore to customers in connection with the incident.
Earlier, the bank had estimated the principal amount involved in the case to be around ₹590 crore. However, after receiving claims from customers and reviewing the details, the bank paid ₹645 crore, which is ₹55 crore more than the initial estimate.
This big fraud was reported in accounts of Haryana Government. It was reported that the employees of Bank embezzled the funds. The Haryana Government announced not to deal with the bank and barred IDFC First Bank and AU Small Finance Bank from Government funds.
Payment Made to Protect Customer Interests
The bank clarified that these payments were made to the concerned customers as part of its commitment to protect customer interests and ensure that clients do not suffer losses. The bank stated that it has followed a principled approach and ensured that customer payments were made in full.
All Claims Related to the Same Chandigarh Branch Incident
IDFC FIRST Bank also clarified that the additional claims are not related to any new incident. All the claims received are connected to the same earlier incident that took place at the Chandigarh branch.
The bank confirmed that no other claims are pending in this matter. It also stated that it has completed the reconciliation of all relevant accounts at the Chandigarh branch and no further discrepancies have been found.
No New Claims Since February 25
According to the bank, no additional claims have been received from any customer or entity across the country since February 25, 2026. This indicates that the issue was limited to a single branch and has now largely been resolved.
Bank to Take Action to Recover Money
IDFC FIRST Bank said it will continue to take action against the individuals responsible for the incident. The bank plans to pursue necessary steps to recover the amount from the perpetrators involved in the case.
Deposits Remain Stable
The bank also reassured investors and customers that its deposit base remains stable despite the incident. The bank’s total deposits stood at ₹2,92,381 crore as of February 28, 2026, slightly higher than ₹2,91,133 crore recorded on December 31, 2025.
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