IDFC FIRST Bank has disclosed a significant fraud incident involving approximately ₹590 crore at its Chandigarh branch, primarily affecting accounts held by various departments of the Government of Haryana. The bank made this disclosure under Regulation 30 of the SEBI Listing Regulations on February 21, 2026.

Discovery and Timeline

The fraudulent activities came to light when the bank received a request from a particular Department of Haryana Government for closure of its account and transfer of funds to another bank. During this process, discrepancies were observed between the amount mentioned and the actual balance in the account. From February 18, 2026 onwards, other Haryana Government entities engaged with the bank regarding their respective accounts, revealing further differences between account balances and amounts claimed by the government entities.

Scope and Impact

The preliminary internal review indicates that the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the Chandigarh branch and does not extend to other customers of the branch. The bank emphasized that the final impact will be determined based on receipt of further information, validation of claims, recoveries through lien marking on fraudulent beneficiary accounts, liabilities of other entities involved, and the legal recovery process.

Immediate Actions Taken

The bank has implemented several immediate measures to address the situation:

• Personnel Action: Four suspected officials have been placed under suspension pending investigation
• Legal Measures: Filed complaints with police authorities and committed to pursuing strict disciplinary, civil and criminal action
• Recovery Efforts: Sent recall requests to beneficiary banks to lien mark balances in suspicious accounts
• External Audit: Initiated process to appoint an independent external agency for forensic audit
• Regulatory Compliance: Informed statutory auditors and relevant regulators

Governance and Oversight

The bank convened multiple high-level meetings to address the incident:

Nature of Fraudulent Activities

According to the bank's disclosure, the incident involves unauthorized and fraudulent activities by certain employees at the Chandigarh branch, potentially in collusion with other individuals, entities, or counterparties. The activities specifically pertain to accounts held by certain departments of the Government of Haryana. The bank noted that the exact time of occurrence is subject to external independent examination.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations, with the bank confirming that all relevant authorities have been informed. The bank has also uploaded the disclosure on its website as required under Regulation 46(2) of the SEBI Listing Regulations. The bank emphasized its commitment to extending full cooperation to investigating agencies and pursuing all available legal remedies to recover the involved amounts.

IDFC FIRST Bank Limited has announced the allotment of equity shares pursuant to the exercise of stock options under its Employee Stock Option Scheme. The disclosure was made in compliance with regulatory requirements under the SEBI Listing Regulations.

Regulatory Disclosure Details

The bank communicated the allotment details to both major stock exchanges on February 14, 2026. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Employee Stock Option Scheme

The allotment relates to the exercise of stock options under the 'IDFC FIRST Bank Limited - Employee Stock Option Scheme' (IDFC FIRST Bank - ESOS). This represents the bank's ongoing commitment to employee participation in equity ownership through structured stock option programs.

Corporate Information

IDFC FIRST Bank Limited operates with its corporate office located at IDFC FIRST Bank Tower in Mumbai's Bandra-Kurla Complex, while maintaining its registered office in Chennai. The bank continues to fulfill its disclosure obligations as a listed entity on both the National Stock Exchange and BSE Limited.