India's financial crime agency conducts searches to probe suspected fraud at IDFC First Bank, source says

IDFC First Bank

11/03/2026 12:58

By Nikunj Ohri

NEW DELHI, March 11 (Reuters) - India's financial crime fighting agency was conducting searches on Wednesday to probe the 5.9 billion rupees ($64 million) fraud reported at IDFC First Bank IDFB.NS in February, a government source told Reuters.

The private bank had disclosed suspected fraudulent transactions in accounts linked to the Haryana state government, which led to the suspension of four employees and a forensic audit by KPMG.

The Enforcement Directorate is searching 19 premises in connection with the case, and a preliminary investigation showed some individuals conducted fund transfers through shell companies to purchase gold and real estate assets, the source said.

IDFC First Bank did not immediately respond to Reuters' request for comment.

On Tuesday, the private lender said it paid 6.45  billion rupees to settle claims related to the suspected fraud.

($1 = 92.0290 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Varun H K)

((nikunj.ohri@thomsonreuters.com; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))