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Informist, Monday, Feb. 23, 2026

 

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--AU Small Finance Bank says was de-empaneled by Haryana govt Feb 18 
--AU Small Bank says no indication of fraud in Haryana govt closed account 
--AU Small Bank says gave details of transactions sought by Haryana govt 
--AU Small Finance Bank says Board aware of issue, internal review continues 
--AU Small Bk: Put some staff off-duty to enable fair review of Haryana accts 
--AU Small Fin Bk shares at INR 970.20, dn INR 59.45 or 5.8% 
--AU Small Finance Bank shares fall; says de-empaneled by Haryana govt Feb 18 
 

 

MUMBAI – AU Small Finance Bank Ltd. Sunday said there is no indication of any fraud at its branches dealing with Haryana government accounts. The bank said it was de-empaneled by the Haryana government on Feb. 18. The bank said its board was aware of issue and that its internal review continues. The bank said to enable a fair review of the transactions, it had put some staff off-duty.

 

The Haryana government account in question was opened with an initial credit of INR 250 million from a large private sector bank and an additional credit of INR 470 million was made to this account through multiple transactions from another private sector bank, which has recently disclosed fraudulent transactions in Haryana government accounts, the bank said, alluding to IDFC FIRST Bank.

 

Of the total INR 720 million in the government account, INR 470 million was transferred to a customer account through 14 transactions. "All these 14 transactions were initiated by the concerned Government Department, duly authorised, and executed in accordance with the instructions provided by the Department, in the normal course of business," the bank said in an exchange filing.

 

The government account was closed on Jan. 15 and the outstanding balance of INR 250 million along with accrued interest was transferred back to the original large private sector bank, AU Small Finance Bank said.

 

The issue came to light after the government of Haryana sought information on account opening and transaction details relating to one of its account, AU Small Finance Bank said. The state government sought information regarding suspected unauthorised transactions between the government account and another customer account.

 

Both the government account and the customer account was opened "after completion of all applicable KYC (know your customer) checks and requisite authorizations and in accordance with the Bank's internal policies and processes," AU Small Finance Bank said.

 

The bank said as on Feb. 17 it had total deposits of INR 7.35 billion from the government of Haryana, which has fallen to INR 5.38 billion as on Feb. 21 across around 200 accounts. This makes up nearly 0.4% of bank's overall deposits as on Dec. 31.

 

For the quarter ended December, AU Small Finance Bank reported a net profit of INR 6.68 billion on a total income of INR 54.51 billion. At 1048 IST, shares of the bank were down more than 7% at INR 956.30 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Suryash Kumar

Edited by Ashish Shirke

 

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