The shares of IDFC First Bank rose as much as 3% to hit an intra-day high of Rs 72.27 apiece after Haryana CM Nayab Singh Saini noted that the Mumbai-headquartered lender had returned Rs 556 crore, including interest after the Rs 590 crore employee fraud came to light at its Chandigarh branch.

Haryana Chief Minister Nayab Singh Saini noted, "Every single penny of the people of the state is safe, and the entire amount of approximately 556 crore rupees (which includes 22 crore rupees in interest as well) has already been returned within just 24 hours. This is the hard-earned money of Haryana's 2.80 crore people—no one can even cast an eye towards it."

This comes after IDFC First Bank detected a Rs 590 crore fraud at its Chandigarh branch.

"This matter pertains to a particular branch in Chandigarh and is confined to a limited set of Haryana government-linked accounts. The main issue which we have observed here is that certain employees of this branch, most possibly in connivance with external parties, have fraudulently transferred these amounts to beneficiaries who had accounts out— outside of our bank," MD and CEO of IDFC First Bank, V Vaidyanathan noted in an analyst call held on Monday.

"We will spare no one. And we have quickly moved in. We have appointed a forensic auditor for this, KPMG. And we will expect them to move in with great diligence and move very fast. And we will take the full support of the law enforcement of the country," Vaidyanathan said.

On whether the Rs 590 crore IDFC fraud case could lead to the detection of similar instances, V Vaidyanathan said, “I can assure you that this issue is confined to only this branch. There is no impact as such on any other customer or any other branch which has come to our notice. In terms of financial impact, uh, the discrepancy currently found is about ₹490 crores.”

On Monday, the ‘employee fraud’ at IDFC fueled baking safety and credibility concerns, plummeting the IDFC First Bank's stock price by 20%, which wiped out ₹15,000–₹18,000 crore in market capitalisation.

As of 2:46 pm, the share price of IDFC First Bank stood 0.23% higher at Rs 70.20 apiece.