In a regulatory filing on Tuesday, the bank said it decided not to hold back payment despite the case being under probe. The payout has been made to the relevant state departments, which, according to the bank, have acknowledged the resolution.
The development follows earlier disclosures made over the past few days regarding the fraud. While details of the underlying transaction are still under investigation, the bank said it will continue to work with Haryana government authorities and law enforcement agencies to identify the perpetrators and seek recovery of its dues.
The amount paid — ₹583 crore — represents the total claim including interest. The bank did not indicate any provisioning impact in the disclosure but emphasised that it remains financially strong.
As of December 31, 2025, the lender reported total customer business (loans and deposits) of ₹5.62 lakh crore, up 22.6% year-on-year. Gross non-performing assets stood at 1.69%, with net NPAs at 0.53%. Capital adequacy was reported at 16.22%.
The bank also highlighted its ratings profile, with AAA from CRISIL for fixed deposits and AA+ long-term ratings from multiple agencies.
IDFC FIRST Bank said it is currently in an investment phase, building out distribution, technology and rural banking capabilities. It expects operating leverage to reflect more strongly in earnings over the next few years and has previously guided for a return to a stronger profit trajectory from FY27, particularly as stress in the microfinance segment eases.
The lender said it intends to pursue legal remedies to recover the funds involved in the fraud case.