In an analyst call on Monday, private lender IDFC First firm described the Rs 590 crore theft discovered at its Chandigarh branch as an isolated instance, pointing out that the firm had opened over 1,000 branches over the previous five years and has never discovered an event of this kind.
"We will spare no one," stated V Vaidyanathan, MD and CEO of IDFC First Bank. And we've moved in fast. For this, we have enlisted KPMG as a forensic auditor. Additionally, we anticipate that they will move in quickly and diligently. And the nation's law enforcement will fully assist us."

Following the discovery of regional-level fraud, IDFC First Bank's shares dropped as much as 20% on Monday, reaching an intraday low of Rs 66.85 per share on the BSE.
The bank with its headquarters in Mumbai has suspended those implicated in this case. In addition, police reports have been filed, the situation has been reported to the regulators and auditors, and other law enforcement authorities are being enlisted to look into it.
This issue concerns a specific Chandigarh branch and is limited to a small number of accounts connected to the Haryana government. In an analyst call today, Vaidyanathan stated, "The primary problem we have seen here is that some employees of this branch, most likely in collusion with outside parties, have fraudulently transferred these amounts to beneficiaries who had accounts out— outside our bank."

Additionally, "these accounts are also expected to be suspicious," according to the bank's top management. These were—may have been carried out in collusion with third parties; the specifics will become clear after the forensic examination.
At the IDFC branch in Chandigarh, the "oldest kind of fraud" was discovered.
V Vaidyanathan stated, "I can assure you that this issue is confined to only this branch," when asked if the Rs 590 crore IDFC fraud case could result in the discovery of similar incidents. As far as we can see, there is no effect on any additional customers or branches. The current disparity, in terms of financial impact, is approximately ₹490 crores.

"In addition, we have received—I would say—certain requirements—reconciliation needs. Consequently, we find a mismatch of ₹490 crores through the reconciliation. We have also anticipated ₹100 crores in—. That's the impact of ₹590 crores," he stated.
This bank claimed that the Rs 590 crore Chandigarh branch fraud case was "a case of an employee fraud with "external parties" being involved as well," adding that it had never "seen an instance like this, of this order of magnitude."

"People have come to this physical transaction, and the checks have been faked, you know. As we say, this is the oldest type of scam that banks are likely to be aware of. Therefore, it is clear that employees' collusion was responsible for this. The entire system is in place, including the manufacturer, checker, authorized, and clearly a group of individuals who work together to make it happen," the statement said.