Haryana
Government Department thanks IDFC FIRST Bank for Principle-Based approach

Mumbai, February 25, 2026 : IDFC
FIRST Bank refers to its recent disclosures regarding an incident at one of its
branches in Chandigarh involving certain accounts of departments of the
Government of Haryana.

Preliminary findings indicate that certain
employees of the branch acted fraudulently in clearing forged instruments and
payment instructions, potentially in collusion with external parties. The
matter is currently under investigation by the relevant authorities.

Despite the investigation being ongoing, the
Bank has immediately honored 100% of the principal and interest claimed by the
relevant departments of the Government of Haryana, amounting to ₹583 crore.
Final amount may change depending on any further claims or reconciliation.

The
concerned departments of the Government of Haryana have thanked and appreciated
the Bank’s principled approach, prompt action and professional conduct in
addressing the matter.

IDFC FIRST Bank, with the full support of the
Haryana Government and the law enforcement agencies is determined to fight the
perpetrators of fraud and bring them to justice.

IDFC FIRST Bank is financially strong and
well-capitalised. As of December 31, 2025, the Bank is rated AAA by CRISIL for
Fixed Deposits and holds AA+ long-term ratings from CRISIL, ICRA, India Ratings
and CARE. Its total customer business (loans and deposits) stands at ₹5,62,090
crore, up 22.6% year-on-year. Asset quality is healthy, with GNPA at 1.69% and
Net NPA at 0.53%. The Bank’s capital adequacy ratio is 16.22%, and its CASA
ratio is 51.6%.

The Bank’s unit economics are strong. Its Net
Interest Margin is healthy at 5.76% in Q3FY26. The Bank is in an investment
phase and investing in building products, technology, distribution, branches,
ATM, Rural Banking, Corporate Banking, Cash Management, Trade, NRI, Credit
Cards and other universal banking solutions to be a large, diversified Bank of
the future. Over the next few years, we expect the operating leverage from
these investments to reflect in the earnings and stronger profits from FY27
onwards.

The Bank is built on a modern technology
architecture and advanced digital infrastructure, which supports superior
customer experience. Its mobile banking platform has been ranked No. 2 globally
by Forrester, an internationally recognized research firm, and receives high
customer ratings of 4.9 on Google and 4.8 on iOS.

About
the Bank

1.
Vision: To build a world-class Bank in India, founded
with principles of Ethical, Digital, and Social Good Banking.

2.
Scale: IDFC FIRST Bank is one of India’s
fast-growing private banks, building its UI, UX, and tech stack like a fintech.
As of December 31, 2025, the Bank serves 35 million customers, with a customer
business of Rs. 5,62,090 crore ($63.0b) comprising customer deposits of
₹2,82,662 crores ($31.7b) and loans & advances of ₹2,79,428 crores
($31.3b). Customer deposits grew 24.3% YoY and loans 20.9% YoY. We reach over
60,000 cities, towns, and villages, operate through 1,066 branches.

3.
Scope: We are a universal Bank offering
complete range of services, including Retail, MSME, Rural, Startups, Corporate
Banking, Cash Management, Credit Cards, Wealth Management, Deposits, Government
Banking, Working Capital, Trade Finance, and Treasury solutions.

4.
Ethical Banking: We are committed to doing right even when
customers are not watching. We have simplified descriptions, calculations, and
legal jargon to avoid confusing customers.

5.
Digital Banking: The Bank’s modern technology stack delivers
high-quality services across all channels like mobile, branch, internet
banking, call centers and relationship managers. Built on cloud-native,
API-led, microservices architecture, supported with data, analytics,
AI, and fine aesthetics, we strive to deliver fintech-grade
experiences on banking platform.

6.
Social Good: We work for society. We have impacted over 40
million lives including 3.6 million women entrepreneurs. We have financed over
7.5 million lifestyle improvement loans (for laptops, washing machines,
refrigerators etc. that enhance the quality of life of middle class), 2.5 lakh
electric 2W and 3W vehicles, 2.7 lakh water, sanitation, and hygiene loans, 2
million livelihood (cattle) loans, and 300,000+ SMEs. On deposits, we provide
access of premium investment research, which is usually reserved for the wealthy,
even to those holding balances as low as ₹5,000. Our ESG scores are high and
improving.

7.
Customer Friendly Banking: We make banking easy by having a customer
first approach. We have waived fees on 36 essential savings account services
which are commonly charged in the market, the first and only bank in India to
do so. We create “pull” products that customers actively seek out.

8.
Governance: We adhere to regulatory guidelines in letter
and spirit and actively work with regulators to make things better. We take
pride in maintaining highest levels of corporate governance.

9.
Shareholders: We are building a well-diversified
universal banking portfolio designed to deliver consistent ROE of 16%+.

10.
Employees: IDFC FIRST Bank is designed to be a happy
place to work, with cutting-edge roles, meaningful growth opportunities, and a
culture of meritocracy. Compensation is healthy, efforts are recognized, and
employees experience the pride and excitement of creating a world-class Bank in
India.