Kotak Mahindra Bank has lodged an FIR after detecting an alleged fixed deposit fraud of nearly ₹160 crore linked to Panchkula Municipal Corporation. The issue came to light when discrepancies were noticed during fund transfers from matured deposits.
According to the bank, all account opening, KYC, and signatory procedures were duly followed. Transactions were processed as per regulatory norms, and reconciliation of funds is currently underway. A significant portion of the deposits has already been reconciled, with the remaining under verification.
Kotak Mahindra Bank has assured full cooperation with law enforcement authorities in investigating the matter. The bank emphasised that its internal processes were intact and compliant with guidelines.
On the market front, Kotak Mahindra Bank’s shares showed resilience, trading 0.3% higher at ₹367.85 apiece despite the news.
This incident follows closely after IDFC First Bank reported a ₹590 crore fraud involving Haryana government-linked accounts, raising concerns over the safety of municipal and government deposits in banks.
The case has now drawn attention to the need for tighter monitoring of large institutional deposits and stricter safeguards against fraudulent activities in the banking sector.