Haryana Chief Minister Claims Recovery of Rs 556 Crore from IDFC First Bank, Lender's Shares Rise

IDFC First Bank Shares Trade Higher After Recovery of Rs 556 Crore

On February 24, IDFC First Bank shares recorded a gain of nearly 1% to Rs 70.54 apiece, a day after hitting a 20% lower circuit. This follows the recovery of Rs 556 crore, including Rs 22 crore in interest, owed to the Haryana state government in a case of alleged fraud.

The Haryana Chief Minister, Nayab Singh Saini, informed the State Assembly that the state government had recovered the amount within 24 hours. The recovery is attributed to the efforts of the bank's employees, who had apprised the government of the incident. The case primarily involves a branch of the bank in Chandigarh, where four to five employees of middle and lower rung colluded with external parties to commit the Rs 590-crore fraud.

In response to the incident, the Haryana government has formed a committee headed by the Finance Secretary to investigate the matter. The government has also assured that anyone involved in the fraud, including bank employees, private individuals, or government employees, will not be spared.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The bank's Managing Director and Chief Executive, V Vaidyanathan, stated that the bank will take provisions as a result of the fraud. The opposition Congress had raised the issue in the Assembly, with Nayab Singh Saini taking a dig at the party, stating that the BJP government has a zero-tolerance policy towards corruption.