IDFC First Bank Repays Rs 583 Crore to Haryana Government, But Share Price Stays Flat

IDFC First Bank Returns Rs 583 Crore to Haryana Government

On February 24, IDFC First Bank disclosed that it has returned Rs 583 crore to the Haryana government, days after the lender revealed a Rs 590-crore fraud committed by its employees.

The lender's shares were trading in mild red on February 25, despite returning the money, as the investigation into the matter is ongoing. The stock had hit a 20% lower circuit on an intraday basis on February 23.

IDFC First Bank has paid out 100% of the principal and interest to the relevant departments of the Haryana government, which works out to a net amount of Rs 583 crore. The departments have thanked and appreciated the bank for its positive approach, professional manner, and speedy resolution.

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On February 24, Haryana Chief Minister Nayab Singh Saini informed the State Assembly that the state government had recovered nearly Rs 556 crore owed to it in the case, including Rs 22 crore in interest, within 24 hours.

The government has formed a committee headed by the Finance Secretary to conduct an in-depth probe into the fraud. The state's Anti-Corruption Bureau will also investigate the matter.

IDFC First Bank remains committed to working with the Haryana government departments and law enforcement agencies to pursue actions against the perpetrators of the fraud and recover its dues.