IDFC First Bank fraud: Forensic audit to finish in month
IDFC First Bank just uncovered a ₹590 crore fraud linked to the Haryana government—turns out, some employees teamed up with outsiders to pull it off.
CEO V. Vaidyanathan says the fraud is unlikely to have a major impact on profits and that wider net interest margins and credit costs will be of help, and a forensic audit by KPMG should wrap up in about a month.
Key developments around the case
After the news broke, Haryana dropped IDFC First Bank (and AU Small Finance Bank) from its approved list—though AU denies any role in the scam.
The fraud was limited to one branch and involved fake cheques.
The bank has filed police complaints, notified regulators, and started recovery efforts; insurance might help cover some losses.
For context, Haryana's deposits make up just 0.5% of IDFC First's total deposits.