IDFC First Bank said it is investigating a suspected fraud of $65m involving accounts linked to local government entities. The bank said it has alerted the police and launched an internal probe. The matter was disclosed in a statement to the Bombay Stock Exchange late on Saturday.

According to Reuters, the Mumbai-based lender reported discrepancies of Rs 5.9bn in accounts related to some entities of the Government of Haryana. The issue surfaced when the entities requested closure of their accounts and the claimed balances did not match the bank’s records.

The bank has suspended four employees from its Chandigarh branch pending investigation. It described the case as involving “unauthorized and fraudulent activities”, Reuters reported. IDFC First said it will appoint an independent agency to conduct a detailed inquiry and has filed a police complaint.

The Haryana state government and police have not yet responded publicly. IDFC First Bank, which counts investors such as Warburg Pincus and Abu Dhabi Investment Authority, reported a quarterly profit of $55.46m in its latest earnings.