India's IDFC First Bank pays $64 million to Haryana state following suspected fraud

IDFC First Bank

24/02/2026 09:54

By Gopika Gopakumar

MUMBAI, Feb 24 (Reuters) - India's IDFC First Bank IDFB.NS has paid a net amount of 5.83 billion rupees ($64.1 million) in principal and interest to departments of the northern state of Haryana, the lender said on Tuesday, following suspected fraudulent transactions in the accounts led to an investigation.

On Saturday, the mid-sized private bank disclosed suspected fraudulent transactions totaling 5.9 billion rupees in accounts linked to the Haryana state government, which led to the suspension of four employees and a forensic audit by KPMG.

The state has launched an investigation and dropped IDFC First from a list of banks that handle government business.

On Monday, Haryana Chief Minister Nayab Singh Saini said the discrepancies were first detected in January.

The entire amount, including an interest of approximately 220 million rupees, has been deposited back into accounts, Saini told the state legislative assembly on Tuesday, according to a video published by news agency ANI.

Saini said that the state will form a high-level committee to hold the officers and employees involved in the suspected fraud accountable and recommend measures to prevent a repeat.

Reuters holds a minority stake in ANI.

($1 = 90.9580 Indian rupees)

 (Reporting by Gopika Gopakumar; Editing by Mrigank Dhaniwala)

 ((Gopika.Gopakumar@thomsonreuters.com;))