IDFC First Bank has closed the financial impact of the suspected fraud at its Chandigarh branch by settling claims amounting to Rs 645 crore, according to a stock exchange filing dated March 10, 2026. The settlement comes after a reconciliation exercise across accounts linked to entities associated with the Haryana government, marking the final stage of the bank’s response to the incident that had earlier raised operational risk concerns.

The private sector lender said that the amount paid was higher than its earlier estimate. When the issue first surfaced, the bank had projected a principal exposure of Rs 590 crore. However, claims received and verified during the reconciliation process resulted in a net payout of Rs 645 crore, implying an incremental outgo of Rs 55 crore above the initial estimate.

According to the disclosure, the additional payout relates to claims tied to the same incident and does not represent any newly identified fraud cases. The bank clarified that the revised number emerged after completing account-level reconciliation at the branch and validating the claims submitted by affected parties.

The development is important because operational incidents at bank branches can sometimes lead to prolonged litigation, uncertainty over final losses, and regulatory scrutiny. By settling claims and completing reconciliation, IDFC First Bank appears to be drawing a line under the financial exposure related to this specific event.

The bank also confirmed that it has not identified any further discrepancies in the accounts reviewed as part of the reconciliation process. Moreover, it stated that no additional claims have been received anywhere across the country since February 25, 2026. This statement is intended to reassure investors and depositors that the issue remains isolated to the previously disclosed case and has not expanded into a broader operational failure within the institution.

The Chandigarh fraud incident had attracted attention because it involved accounts linked to entities associated with a state government. Such cases typically raise questions about internal controls, branch-level oversight, and fraud detection mechanisms within financial institutions. While the bank has not disclosed operational specifics in the latest filing, its statement indicates that the reconciliation process is now complete and no further irregularities have been detected.