This is what Haryana CM said:According to Saini, Rs 556 crore, including Rs 22 crore in interest, was returned within 24 hours. “No one, be it a bank employee, a private individual or a government official, will be spared in this case,” he said while addressing the Haryana Assembly.
The Chief Minister added that four or five mid- and lower-level employees of the Chandigarh bank branch conspired to carry out this operation.
Saini vowed to take strict action against any government official or employee involved in the alleged fraud. “We would form a high-level committee that would not only hold the officials and employees involved in this case accountable but also make suggestions to prevent future situations like the one that occurred today,” he added.
He assured the lawmakers that Haryana’s financial management has been strengthened under the current government and underlined that the public money of 2.8 crore citizens remains fully accounted for.All about Rs 590-crore fraud at IDFC First Bank branch:
IDFC First Bank on Saturday said it has identified an incident of alleged fraud by some employees of one of its branches in Chandigarh, involving accounts linked to the Haryana government.
The lender has suspended four suspected officials pending investigations. It said it will take strict disciplinary, civil and criminal action against the employees and other outside persons, according to the law. The bank also filed a complaint with the police and sent a recall notice to certain beneficiary banks to “seize the balance of suspect accounts in these banks.”
In another exchange filing released on Sunday, IDFC First Bank said it has appointed KPMG to initiate an independent forensic audit into the matter.
What can you expect from IDFC First Bank shares?
After the sharp rise in the stock price in mid-afternoon, the shares erased all gains and traded flat, as seen at 2:40 p.m.
Motilal Oswal Financial Services had said that with Rs 590 crore of deposits at risk, the actual financial impact will depend on the quantity and timing of recoveries, as determined by the findings of the ongoing forensic audit and subsequent legal recovery process.
“We believe that in the worst-case scenario, assuming negligible recovery, provisioning requirements will impact PBT by 56% in Q4 2026,” the domestic brokerage said.
Investec maintained a ‘Buy’ rating but lowered its target price to Rs 105 from Rs 92. It noted that the ultimate impact will depend on ongoing investigations, recoveries and validation of claims.
Jefferies had said IDFC First Bank will have to strengthen operational controls and make it clear that the issue has not spread to other customers. Nomura’s Ankit Bihani said the impact on the bank’s financial situation will depend on possible recoveries through the liens on fraudulent accounts of beneficiaries at other banks, the liabilities of entities involved in the transactions and the legal recovery process.
While pointing out concerns around governance and controls at the industry level, Bihani said given IDFC First Bank’s retail deposit-led model, reputational perception remains critical and the shares may remain under pressure until forensic findings and financial impact are clearly established.
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