IDFC First Bank CEO Vows Action After ₹590-Crore Fraud

IDFC First Bank CEO Pledges Action After ₹590-Crore Fraud, Promises Fixes

V Vaidyanathan, managing director and CEO of IDFC First Bank, has described the ₹590-crore fraud at the bank’s Chandigarh branch as an isolated incident — the first major operational hiccup in over a decade. The bank has launched an internal investigation and appointed KPMG to conduct a forensic audit to identify all parties involved.

Speaking to Moneycontrol, Vaidyanathan assured investors that governance systems remain strong and that lessons will be learned from the incident. “We will take the necessary steps to ensure such events do not recur,” he said, adding that the fraud may involve additional individuals or counterparties beyond those currently identified.

The unauthorised transaction, which involved Haryana government accounts and some bank employees, accounts for nearly a quarter of IDFC First Bank’s annual net profit. Despite the setback, Vaidyanathan emphasised that long-term investors, including Warburg Pincus, continue to have confidence in the bank’s management and commitment to sound business practices.

The CEO also highlighted the bank’s proactive approach, noting that operational processes would be reviewed and strengthened to prevent any future breaches. He assured the public and shareholders that the bank is fully cooperating with regulators and authorities to resolve the matter swiftly.

This incident serves as a reminder of the importance of robust internal controls, even for institutions with a decade-long track record of stability and governance. IDFC First Bank aims to restore trust while maintaining transparency about ongoing measures to address the fraud.