IDFC First Bank: No additional financial liability in Chandigarh

IDFC First Bank has confirmed that no additional financial liability arises from the Chandigarh branch fraud incident, following the settlement of all claims linked to the case. The bank disclosed that it has paid a net principal amount of ₹645 crore to claimants, exceeding its initial estimate of ₹590 crore by ₹55 crore, but emphasizing that these payments pertain exclusively to the same incident and branch, with no new discrepancies identified according to bank disclosures. Regulatory filings stated that reconciliation of accounts at the Chandigarh branch has been completed, and no further claims have been received since February 25, 2026 as reported.

The bank reported stable deposit balances, with total deposits at ₹2,92,381 crore as of February 28, 2026, reflecting a marginal increase from December 31, 2025. It also highlighted a liquidity coverage ratio (LCR) of 114% for the quarter, describing the position as "comfortable" according to the bank's financial report. The Reserve Bank of India (RBI) has stated the incident does not pose systemic risk, characterizing it as an isolated case according to RBI analysis.

IDFC First Bank has suspended four branch employees and initiated legal action to recover losses, while KPMG's forensic audit continues to assess transaction irregularities, employee involvement, and systemic gaps as the bank announced. The bank reiterated its commitment to pursuing recovery through liens on beneficiary accounts and legal proceedings. Analysts note the financial impact, estimated at 20–22% of FY26 projected profits, remains manageable given the bank's capital buffers according to financial analysis. The resolution underscores the institution's focus on reputational containment and maintaining depositor confidence amid ongoing investigations as stated in regulatory filings.