IDFC FIRST Bank has paid a net principal of Rs 645 crore to settle all claims from an incident at its Chandigarh branch. The final payout exceeded initial estimates by Rs 55 crore. The bank's operations and deposit balance remain stable.
IDFC FIRST Bank announced on Tuesday that it has paid a net principal amount of Rs 645 crore to settle claims arising from an incident at a single branch in Chandigarh. The final payout is Rs 55 crore higher than the initial principal estimate of Rs 590 crore previously disclosed to stock exchanges.
Details of the Settlement
In a regulatory filing, the bank clarified that these payments pertain to the same incident linked to the Chandigarh location and do not represent a new development.
According to the IDFC FIRST Bank release, there are no other pending claims related to this matter. The bank stated it has now "completed reconciliation of all relevant accounts in the said Chandigarh branch, and no further discrepancy is noted".
The bank emphasised that its decision to settle the claims reflects its "principled approach on this matter of making good the client payments".
While the bank has fulfilled the principal payouts to concerned clients, it confirmed that it "will continue to pursue actions against the perpetrators to recover our dues".
Bank's Financial Stability Unaffected
Despite the incident, the bank reported that its broader operations remain unaffected. No other claims have been received from any other entity across the country since February 25, 2026.
Stable Deposits and Liquidity
"We would also like to share that the Bank's total deposit balance continues to remain stable and stood at Rs 2,92,381 crores as of February 28, 2026, compared to Rs 2,91,133 crore as of December 31, 2025," the release said.
The bank noted that its liquidity position remains stable, with the average Liquidity Coverage Ratio (LCR) for the ongoing quarter at 114 per cent as of February 28.
Future Performance Outlook
Addressing future performance, the bank stated it "anticipates growth in deposits and loans going forward, broadly in line with the past trends." (ANI)
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