Shares of IDFC First Bank traded in the green on February 24. This came a day after hitting a 20 percent lower circuit. The rebound followed positive news from the Haryana government.
At around 2:30 pm, the bank’s stock was up nearly 1 percent. It traded at Rs 70.54 per share. This marked a significant shift from the previous day’s steep decline.
The recovery of funds was swift and substantial. Haryana Chief Minister Nayab Singh Saini informed the State Assembly about the progress.
He confirmed that nearly Rs 556 crore had been recovered within 24 hours. This amount included about Rs 22 crore as interest. The entire sum related to government departments was credited back.
The Chief Minister was clear about the timeline. He stated the recovery was made within a single day. This quick action helped address a major financial concern.
The fraud itself was disclosed by the bank on Sunday. It involved a Rs 590-crore fraud linked to accounts of the Haryana government. The issue was serious and required immediate attention.
According to the Chief Minister, the fraud was mainly linked to a specific branch. This branch was located in Chandigarh. The investigation would focus on activities there.
He revealed that four to five employees were allegedly involved. These were from middle and lower levels of the bank. They allegedly colluded with external parties.
The bank’s top management echoed this assessment. Managing Director and CEO V Vaidyanathan stated the fraud resulted from collusion. It was between certain employees and outside individuals.
He added that the bank would make financial provisions for the loss. This is a standard accounting practice to cover potential impacts. The bank is taking responsibility for the incident.
A thorough probe has been ordered. Saini said the state’s Anti-Corruption Bureau would carry out a detailed investigation. This shows the government’s commitment to getting answers.
A committee has also been formed to examine the matter. It is headed by the Finance Secretary. Multiple layers of scrutiny are now in place.
The Chief Minister promised strict action against anyone found guilty. This includes bank employees, private individuals, or government officials. Accountability is a key focus.
The issue was raised by the opposition Congress in the Assembly. This prompted the government’s detailed response and assurances.
Responding to criticism, Saini emphasized his government’s zero-tolerance policy against corruption. He stressed that accountability is ensured. The political dimension added to the story’s significance.
The quick recovery of funds appears to have calmed investor concerns. This led to a slight rebound in the bank’s share price. The market responded positively to the resolution.
The sharp fall earlier in the week was a major event. The subsequent recovery, though modest, indicates restored confidence. The financial markets are watching this situation closely.