New Delhi, Feb. 23 -- IDFC First Bank has suspended four employees at a branch in Chandigarh for suspected involvement in a Rs.590 crore fraud targeting bank accounts linked to the Haryana state government. In a filing with the exchanges on Saturday, the bank said its internal assessment found that certain employees conducted fraudulent activities, with potential involvement by other individuals or entities.

PTI on Sunday reported that the Haryana government's Finance Department issued a circular notifying that IDFC First Bank and AU Small Finance Bank have been de-empanelled for all government business - such as holding funds (savings), deposits, investments or transactions - with immediate effect till further notice.

The same day, AU ...