The Reserve Bank of India, led by Governor Sanjay Malhotra, addressed concerns over a significant Rs 590-crore fraud at IDFC First Bank during a press briefing on Monday. Malhotra assured that the issue, linked to specific accounts within the Haryana government, is isolated and not a systemic banking problem.
IDFC First Bank revealed on Sunday that certain employees and external parties committed fraud at a Chandigarh branch, affecting Haryana state government accounts. This was followed by the Haryana government requesting account closures at the branch, leading to the discovery of discrepancies totaling Rs 590 crore.
Consequent to the fraud disclosure, IDFC First Bank’s shares plunged 20% on the BSE. AU Small Finance Bank, which faced de-empanelment alongside IDFC, also saw a 7.62% drop in share value. The incident highlights employee fraud and external involvement, with investigations ongoing.