IDFC First Bank Appoints KPMG As External Auditor Amid Haryana Govt Action
IDFC First Bank has appointed KPMG as the independent external agency to conduct a forensic audit into the suspected irregularities linked to Haryana government-related accounts at its Chandigarh branch, the lender disclosed under SEBI Listing Regulations according to an exchange filing.
The bank said the disclosure has also been uploaded to its website in compliance with Regulation 46(2). This formalises the step it flagged in an earlier exchange filing, where it said an external firm would be engaged for a forensic review.
Haryana Government’s Swift Action
The audit move comes amid swift action by the Haryana government on Feb. 22, 2026, which instructed all departments and state entities to stop using IDFC First Bank and AU Small Finance Bank for government transactions with immediate effect, and to transfer balances and close accounts.
The state circular followed the bank’s revelation of discrepancies in certain government-linked accounts, prompting a wider reconciliation and recovery process.
Forensic Audit and Recovery Efforts
In its earlier communications, IDFC First Bank indicated the issue appears confined to a specific group of government-linked accounts at the Chandigarh branch and said four officials suspected of involvement had been suspended. The lender has filed police complaints and initiated recall requests to lien-mark balances in beneficiary accounts held with other banks.
The forensic audit by KPMG is expected to examine the end-to-end trail, including potential involvement of external entities, and to support recovery efforts.
IDFC First Bank also informed that they will host a conference call at 8:00 a.m. on Feb. 23. There, the senior management of the bank will discuss the recent developments.
Impact on Indian Banking Sector
The move from the Haryana government came after IDFC First Bank disclosed a Rs 590-crore fraud by its employees and others in accounts held by the Haryana government.
According to the state government’s notification, no state funds are allowed to be deposited, invested or transacted via the two private lenders. All departments shall transfer balances and close accounts from both banks, as per the circular.
The state government addressed the circular to all state-run departments as well as public, private, and small finance banks operating in Haryana.
For more information on the Indian banking sector, visit our website and search for Indian banking sector. You can also learn more about forensic audit and its importance in the banking industry.
Conclusion
In conclusion, the appointment of KPMG as the external auditor by IDFC First Bank is a significant step towards investigating the suspected irregularities in Haryana government-related accounts. The forensic audit is expected to examine the end-to-end trail and support recovery efforts.
As an investor, it is essential to stay updated on the latest developments in the Indian banking sector. You can visit our website and search for Indian stock market news to stay informed about the latest trends and updates.