IDFC First Bank has launched an investigation into a suspected fraud of approximately $65 million involving employee activities linked to accounts of local government entities. The bank has also alerted police authorities regarding the matter.
In a statement to the Bombay Stock Exchange on Saturday night, the bank reported discrepancies amounting to 5.9 billion rupees in accounts associated with certain entities of the Haryana state government in northern India.
The Mumbai-based mid-sized private lender said it had suspended four employees from its Chandigarh branch while an internal probe is underway into what it described as “unauthorized and fraudulent activities.”
The bank, which attracted investments from global firms including Warburg Pincus and the Abu Dhabi Investment Authority last year, stated that it would appoint an independent agency to conduct a full investigation and has formally filed a police complaint.
Authorities in Haryana and local police officials have not yet commented on the allegations.
The discrepancies reportedly came to light when government entities sought to close their accounts and the balances claimed by both sides failed to match, according to the bank.
IDFC First Bank recently reported a profit of $55.46 million in its latest quarterly results.
The investigation remains ongoing, and further details are expected as authorities examine the alleged financial irregularities.