IDFC First Bank settles ₹645 crore Chandigarh claims 2026

What the bank disclosed to exchanges

IDFC First Bank on Tuesday said it has received claims and paid a net principal amount of ₹645 crore related to an incident at a single branch in Chandigarh. The bank made the disclosure through an update filed with the National Stock Exchange (NSE). It said the amount paid was higher than the principal estimate it had previously disclosed.

The bank stated that the claims it settled were linked to the same incident and the same Chandigarh branch, and did not indicate any new incident. It also said it has completed reconciliation of all relevant accounts at the branch and noted no further discrepancies.

Settlement higher than the initial estimate

In its filing, the lender referred to its earlier estimate of ₹590 crore in principal exposure on the matter. It said claims received led to a final net principal payout of ₹645 crore.

That means the incremental principal payout was ₹55 crore more than the original estimate. The bank presented the increase as a result of the reconciliation and claims process and clarified it related to the same incident.

Link to Haryana government departments and local accounts

The bank said the payments were made to the relevant departments of the Haryana government as part of the claim settlements. Reports on the matter linked the case to a Haryana government account and a Chandigarh branch where the issue was detected.

IDFC First Bank described the settlement as consistent with its stated approach of making good client dues. The bank’s communication emphasised that the payment was made to settle claims arising from the incident.

FIR and allegations referenced in reports

The disclosure came a day after an FIR was registered in connection with an alleged fraud of over ₹116 crore. Reports said the FIR named some officials of the bank and an outsourced employee of the Municipal Corporation Chandigarh.

The bank’s exchange filing focused on the status of claims, payouts, and reconciliation, rather than the FIR details. It reiterated that the claims were tied to the same Chandigarh branch incident.

Reconciliation completed, no further discrepancies flagged

A key part of the update was the reconciliation outcome. IDFC First Bank said it has completed reconciliation of all relevant accounts in the Chandigarh branch and that no further discrepancy has been noted.

The bank also stated there were no other pending claims related to the matter. This point was repeated across the bank’s exchange communication and subsequent reporting.

No additional claims since February 25, 2026

IDFC First Bank said it has not received claims from any other entity across the country since February 25, 2026. The statement was positioned as a system-wide check beyond the specific branch involved.

The bank’s clarification matters because the original disclosures and subsequent updates involved large principal sums and a government-linked counterparty. By stating that no claims have come in after February 25, the bank signalled the issue has not widened beyond what has already been identified and reconciled.

Operations and deposits described as stable

Despite the incident, the bank said its broader operations remain unaffected. In one report, it also said its deposit balance remained stable at ₹2.92 lakh crore as of February 28.

These statements were included alongside the settlement update to indicate continuity of normal banking operations. However, the bank did not provide additional quantitative operational impact metrics in the disclosures cited.

What the bank said about recovery actions

The bank said it will continue to pursue actions against the perpetrators to recover its dues. The exchange filing language highlighted that the payouts were made to settle claims, while recovery efforts would be pursued separately.

The filing did not provide timelines or amounts expected to be recovered. It also did not outline specific legal steps beyond the intention to take action against those responsible.

Key numbers at a glance

Why this update matters for investors

For shareholders and bond investors, the most material part of the update is the quantified settlement amount and the bank’s statement that reconciliation is complete with no further discrepancies noted. The shift from an initial ₹590 crore estimate to a ₹645 crore payout shows that the claims process resulted in a higher cash outgo than first indicated.

At the same time, the bank’s repeated clarification that the claims relate to the same incident and branch is intended to limit concerns about additional undisclosed exposures. The statement that no other claims have been received since February 25, 2026 further narrows the scope, based on the information disclosed.

Conclusion

IDFC First Bank said it has settled claims linked to the Chandigarh branch incident by paying a net principal of ₹645 crore, which is ₹55 crore higher than its initial estimate of ₹590 crore. The bank said reconciliation is complete, no further discrepancies have been noted, and no other claims have been received since February 25, 2026. It also said it will continue pursuing action against the perpetrators to recover dues, while stating that broader operations remain unaffected.