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Informist, Tuesday, Feb. 24, 2026

 

NEW DELHI – The Haryana government has formed a committee to look into the unauthorised transfer of funds from IDFC FIRST Bank and AU Small Finance Bank. The high-level committee will also examine the state's banking policy, according to an order by the state government's personnel department. 

 

The four-member committee will examine all aspects relating to the empanelment of IDFC FIRST Bank and AU Small Finance Bank, and the decision taken by the concerned departments to deposit substantial government funds in these banks. The panel will also look at issues of non-reconciliation by government departments and any lapses in fund transfers. The panel will submit its report to the state government within a month, the order said.

 

IDFC FIRST Bank Saturday said it detected a fraud in accounts linked to the Haryana government at a Chandigarh branch, which was initially estimated at around INR 5.90 billion. The bank, which suspended four officials suspected of involvement in the fraud, has appointed KPMG to conduct an independent, external forensic audit. On Tuesday, the private sector lender said it has paid back INR 5.83 billion to various departments of the Haryana government, including the principal amount lost in the fraud and the interest on it.

 

The Haryana government last week de-empanelled IDFC FIST Bank and AU Small Finance Bank from government business. AU Small Finance Bank Sunday said there was no indication of any fraud at its branches dealing with Haryana government accounts.

 

For the quarter ended December, IDFC FIRST Bank reported net profit of INR 5.03 billion while AU Small Finance Bank reported net profit of INR 6.68 billion. On Tuesday, shares of IDFC FIRST Bank ended at INR 70.97 on the National Stock Exchange, up 1.3% from the previous close. Shares of AU Small Finance Bank Tuesday ended 2.9% higher at INR 1,002.20 on the National Stock Exchange.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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