Fraud-hit IDFC First Bank pays Rs 583 crore to Haryana govt

Bank says in a regulatory filing that the payment was made even as a probe into the alleged irregularities is on; four people arrested in connection with the case

Fraud-hit IDFC First Bank has said it has paid out 100 per cent of the principal and interest, which works out to Rs 583 crore, to relevant departments of the Haryana government, "upholding the highest principles and standards", even as a probe into the alleged irregularities is on.

In a regulatory filing, dated February 24, 2026, the bank informed the National Stock Exchange and Bombay Stock Exchange about the payment.

It referred to its disclosures made on February 21 and February 22 under Regulation 30 of the SEBI Listing Regulations and said, "Our bank always upholds the highest principles and standards. We call ourselves a customer-first bank in the way we define our product policies, disclosures, and no fine-print banking. We give benefit of doubt to customers in event of difference of opinion."

IDFC First Bank on February 22 disclosed a Rs 590-crore fraud committed by certain employees and others at a particular branch in Chandigarh in a specific set of Haryana State government accounts.

On Tuesday, the bank said, "Even though the investigation in the matter is ongoing, we have paid out 100 per cent of the principal and interest to the relevant departments of Haryana government as claimed, which works out to a net amount of Rs 583 crore."

It said the departments concerned have thanked and appreciated the bank for the speedy resolution of the issue.

The bank said it would work together with the Haryana government departments concerned and the law enforcement agencies, to pursue actions against the "perpetrators of the fraud and look forward to recovering our dues".

On Tuesday, Haryana Chief Minister Nayab Singh Saini informed the Legislative Assembly that the State government had recovered nearly Rs 556 crore owed to it in the case. "Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," Saini said in the House. "I want to clarify before the House that the money concerning Haryana government departments, (the) entire amount has been deposited back into our accounts...The recovery has been made within 24 hours," Saini said.

Four arrested

Meanwhile, the Haryana's State Vigilance and Anti-Corruption Bureau has arrested four people in connection with the case. Of the four arrested, two are ex-IDFC First Bank employees and two are private persons who own a partnership firm, PTI reported on Wednesday quoting officials.

The arrests were made on Tuesday evening as part of the ongoing investigation into the fraud case.