Big Scam in Bank :"Ghost" FDs Totaling Rs 116.84 Crore Found in Government Accounts

 

Another theft of Rs. 116.84 crore has been reported at IDFC First Bank, following the loss of Rs. 590 crore in Haryana government accounts kept there. Following the finding of "ghost" fixed deposits and financial irregularities totaling ₹116.84 crore, Chandigarh Police's Economic Offenses Wing (EOW) filed a formal complaint on Monday. 

The money is connected to the accounts of Chandigarh Smart City Limited (CSCL), which is no longer in operation. These accounts were kept at IDFC First Bank's Sector-32 branch.Amit Kumar, Commissioner of the Municipal Corporation (MC), Chandigarh, reported unusual financial activities and potential fraud involving a significant sum of public funds, according to the FIR. 

Based on the complaint, the EOW filed a case under a number of Bharatiya Nyaya Sanhita (BNS) sections, including criminal conspiracy, criminal breach of trust, fraudulent use of counterfeit papers, cheating, and forgery.According to police records, the alleged offense occurred over an extended period of time between March 28, 2025, and March 7, 2026. 

Financial transactions made through the IDFC First Bank branch in Sector-32 were connected to the suspected fraudulent activity. Anubhav Mishra, a resident of Adarsh Nagar in Naya Gaon, Mohali, is named as one of the suspects in the FIR. Ribhav Rishi is another individual included in the complaint. The potential involvement of other associates is also being looked into by the police.

The case is being handled as a major economic offense, according to police sources. Investigators are looking into the involvement of other people and any financial ties to the scheme.The investigating team will meticulously review financial papers, digital transaction trails, and bank records, according to a police officer. 

The goal is to determine how the money was misappropriated and whether insider assistance, account manipulation, or falsified documents were used in the scam. The accused and other relevant parties may soon be called in for interrogation by the EOW, which has begun gathering evidence. In order to monitor the flow of the money, police are also working with bank representatives and financial specialists.

More information is anticipated to surface during the probe, according to officials. Depending on the results, more charges and accused individuals may be added. Saurabh Joshi, the mayor of Chandigarh, has taken media claims regarding the purported ₹116.84 crore "ghost" fixed deposits very seriously. He has requested a thorough Action Taken Report (ATR) from the Municipal Commissioner and ordered an immediate investigation. 

Every rupee of public funds belongs to the people of Chandigarh, the mayor declared in a statement released on Tuesday, and any financial irregularity will not be accepted. According to reports, during March and April of 2025, fixed deposits totaling around ₹116.84 crore were not recorded in the official bank records. This sparked questions about accountability and financial oversight.

Mayor Joshi expressed worry about the matter and stated that Chandigarh is renowned for its clean administration and transparent governance. According to him, any issue involving that much public money ought to be looked into as quickly and transparently as possible. Additionally, he mentioned that the EOW has initiated an inquiry and filed a FIR. 

Officials were instructed by the mayor to fully assist the investigating agencies.Joshi has requested that the Municipal Commissioner name the officials and personnel in charge of overseeing and administering CSCL's bank accounts during the pertinent time frame. Additionally, he has suggested a thorough forensic examination of every financial transaction made by CSCL since its founding. An impartial third-party auditing firm should carry out the audit.

The Municipal Commissioner has been asked to submit a detailed report within five working days. The report should include the status of the financial discrepancies and the progress of the ongoing investigation.

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What is the IDFC First Bank Rs 590 crore fraud case?

A significant scam involving Rs. 590 crore has been revealed at the IDFC First Bank branch in Chandigarh. 

According to allegations, several bank workers at the Chandigarh branch engaged in fraudulent operations involving Rs 590 crore from accounts connected to the government of Haryana. 

An inquiry is still underway, and four bank employees have been suspended. In compliance with existing legislation, the bank said that it will take severe disciplinary, civil, and criminal action against the employees and other external parties involved. 

According to the statement, "the Bank has sent recall requests to specific beneficiary banks to lien mark balance in suspicious accounts held in these banks." The bank is currently hiring a third-party, independent organization to carry out a forensic audit.

After the bank was asked by the Haryana government to close its account and move the money to another bank, the fraud was discovered. During the process, certain differences between the amount stated and the account balance were noticed. 

Starting on February 18, 2026, some government agencies in Haryana contacted the bank about their individual accounts. Disparities between the account balances reported by the government agencies and those held with the bank were discovered during this process. 

The bank has highlighted, however, that the fraudulent actions were limited to a particular set of government-linked accounts inside the Haryana Government that were handled through the aforementioned Chandigarh branch and did not affect other Chandigarh Branch customers.

Actions taken by IDFC First Bank in Chandigarh Fraud

• Four suspected officials have been placed under suspension pending investigation. The Bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.
• A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was convened on February 20, 2026 and the matter was placed before the Committee.
• The meeting of the Audit Committee and the Board of Directors were convened on February 21, 2026 to apprise on the matter.
• The Bank is in the process of appointing an independent external agency to conduct an independent Forensic Audit.
• The statutory auditors have been informed.
• The Bank has filed a complaint with the Police authorities and will extend full cooperation to the investigating agencies.
• The Bank has sent recall request to certain beneficiary banks to lien mark balance in suspicious accounts held in these banks.

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IDFC First Bank Q3 Net profit jumps 48% YoY

IDFC First Bank announced its October to December quarter results for the financial year ending 2025-26 on Saturday, 31 January 2026. The company recorded a 48% rise in its standalone net profits to Rs.502 crore, compared to Rs.339 crore in the same quarter of the previous financial year.

company's interest income rose 11% to Rs.10,417 crore for the October to December quarter of the fiscal year ending 2025-26, compared to Rs.9,343 crore in the same period a year ago.IDFC First Bank's income from other operations witnessed a 19% increase to Rs.2,125 crore in the third quarter, compared to Rs.1,779 crore in the same period a year ago.

The institutional lender's total expenses for the October to December quarter witnessed a 12% rise to Rs.10,508 crore, compared to Rs.9,363 crore in the same period of the previous financial year, according to the standalone statements.IDFC First Bank's non-performing assets portion witnessed a 25 basis point fall to 1.69% in the October to December quarter, compared to 1.94% of the same period of the previous financial year, according to the company's stock exchange filings.

Although the overall gross NPA dropped, the net NPA rose 1 basis point to 0.53%, compared to 0.52% in the same period of the previous quarter, the filings showed.The company's retail banking segment, along with the wholesale banking and treasury operations, contributed the most to the rising income for the quarter.

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IDFC First Bank Q2 Net profit surges 75.5% YoY

IDFC First Bank announced the July to September quarter earnings for FY26 on Saturday, October 18, 2025. The bank reported a 75.5% rise in net profit to ₹352.3 crore in the second quarter of the 2026 fiscal, compared to ₹200.7 crore in the same quarter a year ago, according to an exchange filing.

IDFC First Bank's total interest income rose nearly 11% to ₹9,936.8 crore in the second quarter of the financial year 2025-26, from ₹8,956.9 crore in the same period of the previous year.

The bank’s net interest income (NII) rose 6.78% in the second quarter of the financial year ended 2025-26 to ₹5,113 crore, from ₹4,788 crore a year ago.

The lender's percentage of gross non-performing assets (NPAs) to gross advances for the second quarter of the 2026 fiscal year stood at 1.86% compared to 1.92% in the same quarter of the previous financial year, the bank informed, while net NPAs stood at 0.52% for the quarter under review.

IDFC FIRST Bank serves 35 million customers, with a customer business of ₹5,35,673 crore comprising customer deposits of ₹2,69,094 crores and loans and advances of ₹2,66,579 crores. Customer deposits grew 23.4% YoY and loans 19.7% YoY, the bank said in a release.

Reflecting on the results, V Vaidyanathan, MD and CEO of IDFC First Bank, said, “The stress in the MFI (microfinance) business was an MFI industry issue and looks like it is behind us. 

Other than MFI, the asset quality of the Bank has always been stable for over a decade through cycles and continues to be so with Gross NPA at 1.86% and Net NPA at 0.52% as of 30th September 2025."

He added, "On the cost of funds, we expect it to drop from here on. The bank is witnessing improving operating leverage. For instance, in FY25, total Business, i.e. loans and customer deposits, grew by 22.7% YoY, against an increase in Opex of 16.5% YoY. 

Following on, in H1 FY26, total Business grew by 21.6% YoY, against an Opex (operational expenditure) increase of 11.8% YoY. We hope to sustain this trend.”

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IDFC First Bank Q1 Profit down 32% YoY

IDFC First Bank has reported a 32% YoY decline in its profit after tax (PAT) at Rs 463 crore in the first quarter of the financial year 2026, while the net interest income (NII) witnessed a growth of 5.1% YoY to Rs 4,933 crore in the same period.

In the first quarter of the previous fiscal year, the NII was equivalent to Rs 4,695 crore. Nonetheless, the PAT increased 52.1% on a quarterly basis. From 5.95% in Q4 FY25 to 5.71% in Q1 FY26, the bank's Net Interest Margin (NIM) on AUM decreased by 24 basis points on a quarterly basis. 

 Lower investment yields, a change in the asset mix, notably a precipitous collapse in the microfinance sector, and changes in repo rates were the primary causes of this decline.

Between Q1 FY25 and Q1 FY26, operating profit (excluding trading gains) decreased 6.2% year over year, from Rs 1,858 crore to Rs 1,744 crore. But sequentially, it increased by 7.8%. For the quarter that concluded on June 30, 2025, the bank reported strong increase in its deposit base. 

Customer deposits increased from Rs 2,04,572 crore to Rs 2,56,799 crore, a 25.5% year-over-year increase. CASA deposits increased 30.2% to Rs 1,27,158 crore, while retail deposits increased 24.5% to Rs 2,04,222 crore.

 During the same time previous year, the CASA ratio increased from 46.6% to 48%. At the end of the quarter, 80% of all customer deposits were in the form of retail deposits.

Gross NPA stood at 1.97% as of June 30, 2025, slightly higher than 1.87% in the previous quarter. Net NPA was at 0.55%, compared to 0.53% as of March 31, 2025. Gross NPA of the Retail, Rural, and MSME book rose to 1.82% from 1.70% sequentially.

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IDFC FIRST Bank net profit decline 58% YoY

IDFC First Bank recorded a net profit for Q4 FY25 of Rs 304 crore, which was 58 percent less than the Rs 724 crore profit for Q4 FY24. The microfinance portfolio's increased provisions associated with stress were the main cause of the decline in profitability. Net profit for the entire fiscal year FY25 was Rs 1,525 crore, a 48.4% decrease from the previous year.

Retail deposits increased by 26.4 percent to Rs 1,91,268 crore, while customer deposits gained a strong 25.2 percent to Rs 2,42,543 crore. At Rs 1,18,237 crore, CASA deposits also showed a robust 24.8 percent year-over-year rise. At 46.9 percent, the CASA ratio held steady and was just slightly lower than 47.2 percent a year earlier.

At Rs 2,41,926 crore, the bank's total loans and advances increased by 20.4% year over year. While the microfinance portfolio shrank by 28.3%, retail, rural, and MSME loans increased 18.6% to Rs 1,97,568 crore.

 

In Q4 of FY25, Net Interest Income (NII) increased 9.8% year over year to Rs 4,907 crore. NII grew 17.3% year over year for the entire year. Due in significant part to the microfinance industry's collapse, the Net Interest Margin (NIM) on AUM decreased 9 basis points sequentially to 5.95 percent in Q4 FY25. The NIM for the entire year was 6.09 percent.

In Q4 of FY25, Fee and Other Income increased by 5.7% year over year to Rs 1,702 crore. The growth in Fee and Other Income for FY25 was 15.2 percent. In Q4, operating expenses increased by 12.2 percent to Rs 4,991 crore, while core operating income increased by 8.7 percent to Rs 6,609 crore. During the quarter, core operating profit was Rs 1,618 crore; for the entire year, it increased 17.2 percent to Rs 7,069 crore. 

Despite sectoral constraints, asset quality metrics stayed consistent. Net non-performing assets (NPA) climbed by 1 basis point to 0.53 percent, while gross non-performing assets (GNPA) improved by 7 basis points sequentially to 1.87 percent. With the microfinance portfolio excluded, the retail, rural, and MSME book's gross non-performing assets (NPA) increased to 1.40%.

At 72.3%, the Provision Coverage Ratio (PCR) was in good health.  For FY25, the total provisions were Rs 5,515 crore, or 2.46 percent of the loan book.  The adjusted credit cost for the year, excluding microfinance and one toll account, was 1.76 percent; in Q4, it improved 9 basis points from the previous quarter to 1.73 percent. In Q4 of FY25, the bank's gross slippages were Rs 2,175 crore, somewhat less than the Rs 2,192 crore in Q3.

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IDFC First Bank Q2 Net profit declines 73%

IDFC First Bank announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Saturday, October 26, reporting a decline of 73.3 per cent in net profit to ₹200.7 crore, compared to ₹751.3 crore in the corresponding period last year. The private sector bank was formed by merging the banking arm of project financer Infrastructure Development Finance Company (IDFC) and Capital First.

The bank said its net profit was impacted by prudent provisions of ₹568 crore, including Rs. 315 crore in the microfinance institution or MFI business (due to stress in the MFI industry) and ₹253 crore in one Maharashtra-based toll account (recent waiver of toll fees at Mumbai entry points).

IDFC First Bank's net interest income (NII)—the difference between interest earned and paid—rose 21 per cent to ₹4,788 crore compared to ₹3,950 crore in the year-ago period. The bank's core operating profit (excluding trading gain) grew by 28 per cent year-on-year (YOY) from Rs. 1,456 crore in Q2 FY24 to Rs. 1,857 crore in the year-ago period.

Including trading gains, core operating profit increased by 30 per cent year over year. Asset quality improved, as gross non-performing assets (NPA) were 1.92 per cent as of September 30, 2024, against 2.11 per cent as of September 30, 2023. The net NPA or bad loans was 0.48 per cent as of September 30, 2024, against 0.68 per cent as of September 30, 2023.

Provisions for Q2 FY25 stood at ₹1,732 crore, primarily because of a prudent provisioning buffer of ₹568 crore created for MFI business ( ₹315 crore). Operating income grew 21 per cent from Rs. 5,380 crore in Q2 FY24 to Rs. 6,515 crore in Q2 FY25. Operating expenses grew by 18 per cent YoY from Rs. 3,870 crore in Q2 FY24 to Rs. 4,553 crore in Q2 FY25.

Customer deposits increased by 32.4 per cent YoY from Rs. 1,64,726 crore as of September 30, 2023, to ₹2,18,026 crore as of September 30, 2024. Retail deposits grew by 37.4 per cent YoY to Rs. 1,75,300 crore from Rs. 1,27,595 crore in the year-ago period. CASA deposits grew by 37.5 per cent from Rs. 79,468 crore as of September 30, 2023 to Rs. 1,09,292 crore.

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IDFC First Bank Q4 results: Net profit falls 10%

IDFC FIRST Bank on Saturday reported 10 per cent decline in net profit at Rs 724 crore for the fourth quarter ended March 2024 due to substantial jump in provisions.

The lender had earned a net profit of Rs 803 crore in the year-ago period.

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Total income rose to Rs 9,861 crore from Rs 7,822 crore a year ago, IDFC FIRST Bank said in a regulatory filing. Interest income grew to Rs 8,219 crore during the period under review, from Rs 6,424 crore in the corresponding quarter a year ago.Net Interest Income (NII) grew 24 per cent from Rs 3,597 crore in Q4FY23 to Rs 4,469 crore in Q4FY24, it said.

ALSO READ: RBL Bank Q4 results: PAT jumps 30% to Rs 353 crore

On the asset quality side, the bank's gross Non-Performing Assets (NPAs) reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent by the end of March 2023.Net NPAs also came down to 0.60 per cent of the advances from 0.86 per cent at the end of 2024.

However, provisions and contingencies increased by 50 per cent to Rs 722 crore in Q4FY24 as compared with Rs 482 crore a year ago.The bank did not declare any dividend for FY24 and FY23.

The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of previous fiscal.

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