IDFC Bank Says Paid Rs 583 Cr To Haryana Govt After Detecting Fraud
“We will review our numbers during the 4Q preview and in the interim, we maintain our Neutral rating on the stock with a revised price target of Rs 80: Motilal Oswal
MUMBAI: IDFC First Bank on Tuesday said that it has transferred the entire principal and interest, amounting to ₹583 crore, to relevant departments of the Haryana government after a fraud was found at its Chandigarh branch.
The Bank in a filing to the exchanges said that it has paid 100 per cent of the principal and interest to the concerned department even as the investigation is still going on.
The lender’s shares recovered following the refund announcement, after falling nearly 20 per cent a day earlier. Its shares closed 1.33 per cent higher on Tuesday on the BSE at ₹70.97, even as the broader markets fell 1.28 per cent on the day.
“even though the investigation in the matter is ongoing, we have paid 100 per cent of the principal and interest to relevant departments of the Haryana government as claimed. This works out to a net amount of ₹583 crore,” IDFC First Bank said in an exchange filing.
Meanwhile, Haryana Chief Minister Nayab Singh Saini on Tuesday informed the State Assembly that the state government had recovered nearly ₹556 crore owed to it in the IDFC First Bank case. “Nearly ₹556 crore, including nearly ₹22 crore in interest, came back within 24 hours,” Saini said in the House.
On Sunday the lender had disclosed that it is investigating a suspected fraud of Rs 590 crore perpetrated by some of its employees involving accounts held by Haryana government entities and has alerted the police.
The fraud came to light when a Haryana Government department that had been banking with IDFC First Bank, made a request for a closure and balance transfer to another bank on an undisclosed date. However, the amount mentioned by the government department did
not match the balance in the account.
It said that similar issues were observed in other accounts of Haryana Government entities, who engaged with the bank from February 18 onwards.
The lender has appointed KPMG as an auditor and the investigations are underway.
Meanwhile Motilal Oswal in a report said that in a worst-case scenario assuming negligible recovery, the provisioning requirement will impact 4QFY26 PBT by 56 per cent.
“We will review our numbers during the 4Q preview and in the interim, we maintain our Neutral rating on the stock with a revised price target of Rs 80.