IDFC First Bank shares fall 17% to ₹75:Haryana government detects ₹590 crore worth fraud in goverment account opened with lender

IDFC First Bank shares hit a 10% lower circuit on February 23 and dropped to Rs 75.16. Actually, the bank has informed BSE that a fraud of around Rs 590 crore has been detected at one of its Chandigarh branches. The matter came to light when a department of the Haryana government informed the bank about some suspicious transactions. The bank has currently suspended 4 suspected employees involved in this case. Irregularities found in Haryana Government accounts
The bank said that initial investigation revealed that this fraud occurred with some accounts of Haryana Government in a special branch in Chandigarh. According to the bank, the reconciliation process of those accounts is currently ongoing, which involves an amount of about Rs 590 crore . The bank is now trying to find out how long this irregularity had been going on. Suspicion of collusion with outsiders Recovery efforts have begun
IDFC First Bank has also sent ‘recall requests’ to banks where suspicious money has been transferred. The bank has requested other banks to hold the balance in those ‘suspicious accounts’ so that money can be recovered. The bank says that accurate assessment of losses will only be possible after the investigation and recovery process is complete.