IDFC First Bank fraud: 4 officials suspended, KPMG roped in
IDFC First Bank uncovered a massive ₹590 crore fraud at its Chandigarh branch, where some employees allegedly tampered with Haryana government-linked accounts.
The scam surfaced after a state department tried to close an account and noticed the numbers didn't add up.
Several other Haryana government departments soon found similar issues, but regular customers aren't affected.
Four bank officials are now suspended, and KPMG is digging into the details with a forensic audit.
Bank's shares crash, ₹14,000 crore wiped out
The bank quickly flagged suspicious accounts to other banks and held emergency board meetings on February 21.
Meanwhile, the Haryana government has dropped IDFC First Bank from all its official business for now.
News of the fraud sent the bank's shares crashing by 20%, wiping out ₹14,000 crore in value—more than what they earned in profit last quarter.
The final financial impact will depend on what can be recovered or covered by insurance.