IDFC FIRST Bank has disclosed unauthorized fraudulent activities involving approximately ₹590 crore at its Chandigarh branch through a regulatory filing under Regulation 30 of SEBI Listing Regulations. The fraud involves certain employees at the branch potentially in collusion with other individuals and entities, specifically affecting accounts held by Haryana Government departments.

Fraud Discovery and Scope

The bank identified the incident following a request from a Haryana Government department for account closure and fund transfer to another bank. During this process, discrepancies were observed between the mentioned amount and actual account balance. From February 18, 2026 onwards, other Haryana Government entities engaged with the bank regarding their accounts, revealing further balance differences.

Immediate Actions Taken

IDFC FIRST Bank has implemented comprehensive measures to address the fraud. Four suspected officials have been placed under suspension pending investigation, with the bank committed to pursuing strict disciplinary, civil and criminal action against responsible employees and external individuals.

Governance and Investigation Process

The bank has activated its formal governance mechanisms to handle the situation. A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds was convened on February 20, 2026. Subsequently, meetings of the Audit Committee and Board of Directors were held on February 21, 2026 to review the matter.

The bank has also sent recall requests to beneficiary banks to mark liens on suspicious accounts held in these institutions. An independent forensic audit is being commissioned to conduct a thorough examination of the fraudulent activities.

Recovery and Impact Assessment

The final impact on IDFC FIRST Bank will depend on several factors including validation of claims, recoveries through lien marking on fraudulent beneficiary accounts maintained with other banks, liabilities of other entities involved in fraudulent transactions, and the legal recovery process. The bank emphasized that the matter is confined to specific government-linked accounts within Haryana Government operated through the Chandigarh branch and does not extend to other customers.

The bank has assured full cooperation with investigating agencies and regulatory authorities. The disclosure has been made in compliance with SEBI Listing Regulations and uploaded on the bank's official website as required under regulatory guidelines.

IDFC First Bank Limited has appointed KPMG to conduct an independent forensic audit, the bank announced in a regulatory filing dated February 22, 2026. This appointment follows the bank's previous disclosure dated February 21, 2026, where it had indicated that it was in the process of selecting an independent external agency for this purpose.

Regulatory Compliance and Disclosure

The appointment has been disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made in accordance with the SEBI Master Circular dated January 30, 2026.

Documentation and Transparency

In compliance with Regulation 46(2) of the SEBI Listing Regulations, the bank has uploaded this disclosure on its official website at www.idfcfirst.bank.in . The disclosure was signed by Satish Gaikwad, General Counsel and Company Secretary of IDFC First Bank Limited.

The bank's communication to both the National Stock Exchange of India Limited and BSE Limited ensures comprehensive regulatory compliance across major stock exchanges where the bank's shares are listed.