IDFC First Bank shares plunged sharply on Monday morning after the bank disclosed a ₹590 crore fraud at its Chandigarh branch last Friday, with the stock trading at ₹67.97 on the NSE as of 9.53 am, down 18.61 per cent from its previous close of ₹83.51. The stock opened at ₹75.16, hit the lower circuit band at ₹66.80, and saw heavy sell-side pressure with nearly 85 per cent of traded quantity on the sell side. Traded value had already crossed ₹2,027 crore by the time of writing, reflecting significant institutional activity. The bank’s market cap stood at approximately ₹58,337 crore.
Nomura flagged that the fraud disclosure will weigh on near-term sentiment, noting the ₹5.9 billion amount under reconciliation represents 28 per cent of FY26 forecast profit and 19 basis points of the CET-1 ratio, which stood at 14.23 per cent as of December 2025. The brokerage cautioned that the stock could remain under pressure until forensic findings and the financial impact are clearly established, adding that in deposit-linked frauds, banks typically recognise losses through P&L once fraud is confirmed, with recoveries often back-ended.
SBI Securities termed the development negative in the short to medium term, noting the mismatch between actual balances and those communicated to account holders, and flagging the suspension of four officials.
The fraud, involving certain employees at the Chandigarh branch and specific Haryana government-linked accounts, was disclosed on February 21. The bank has filed a police complaint, informed its regulator and statutory auditors, initiated lien marking on beneficiary accounts, and appointed KPMG to conduct an independent forensic audit, as disclosed on February 22.
The stock is down over 20 per cent year-to-date and has shed approximately 18 per cent in the past week alone, though it remains about 12 per cent higher on a one-year basis.
Published on February 23, 2026