Private sector lender IDFC First Bank said a forensic review by KPMG found the ₹646 crore fraud uncovered at its Chandigarh branch earlier this year was an isolated incident. The bank disclosed the findings in a stock exchange filing on Friday, confirming the fraud involved collusion between branch employees, customer representatives, and third parties, according to livemint.com.
The bank had initiated a probe to determine whether the documents central to the alleged fraud were genuine or forged. KPMG’s forensic review examined the transactions and interactions at the Chandigarh branch, concluding that the fraudulent activity was limited to a specific group within the branch and did not indicate a wider systemic issue. The findings aim to reassure stakeholders about the bank’s internal controls and risk management processes.
This case highlights the challenges banks face in detecting and preventing internal fraud, especially when multiple parties collude. The ₹646 crore fraud is significant compared to other recent banking frauds in India but remains isolated within IDFC First Bank’s operations. The bank’s swift action to commission an independent forensic review aligns with regulatory expectations and industry practices to maintain transparency and accountability.
IDFC First Bank’s stock exchange filing on June 5, 2026, detailed the KPMG report’s conclusions. The bank continues to strengthen its compliance and monitoring mechanisms following the incident, aiming to prevent similar occurrences in the future, as reported by livemint.com.