IDFC Bank Scandal: Uncovering the ₹590 Crore Fraud
The ₹590-crore fraud involving Haryana government accounts was due to collusion among IDFC Bank employees and external parties. Managing Director V Vaidyanathan assured minimal profit impact, with measures underway, including a forensic audit by KPMG. The bank has de-empanelled IDFC First Bank and AU Small Finance Bank from government business.
- Country:
- India
IDFC Bank is embroiled in a ₹590-crore fraud involving Haryana government accounts. The fraud resulted from collusion between bank employees and outside parties, as confirmed by Managing Director V Vaidyanathan on Monday.
Despite the severity, the bank stands firm on minimal impact on profits, thanks to wider net interest margins and effective credit cost management strategies. Vaidyanathan assures investors that a strong Q4 profitability is expected.
An independent forensic audit led by KPMG is ongoing, with results anticipated in 4-5 weeks. Meanwhile, police complaints, regulatory notices, and recovery efforts are in full swing.
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