IDFC First Bank Shares Crash 15% After Rs 590 Crore Fraud Case Surfaces; Here’s All You Need to Know
Business
Shares of IDFC First Bank nosedived as much as 15 per cent in early trade on Monday after the lender disclosed a Rs 590 crore fraud at one of its branches in Chandigarh. The sharp fall in IDFC First Bank Shares triggered panic among investors, pushing the stock to the lower circuit shortly after the market opened.
IDFC First Bank Share Price Today
On February 23, IDFC First Bank shares opened at Rs 75.16, nearly 10 per cent lower than the previous close of Rs 83.51. Within minutes, the stock extended losses and hit Rs 70.98 apiece on the NSE with a 15 per cent drop in morning trade. The sudden sell-off came after the bank informed stock exchanges that it had uncovered fraudulent Activities in its books
Rs 590 Crore Fraud Case: What Happened?
On February 22nd, the bank detected a fraud of approximately Rs 590 crore at its Chandigarh branch. According to regulatory disclosures, the incident involved unauthorised activities in Haryana government-linked accounts.
The bank has suspended four employees suspected of involvement. A forensic audit has been initiated, and a police complaint has been filed. Additionally, suspicious accounts have been lien-marked, including those held at other banks.
CEO V. Vaidyanathan clarified that the issue appears to be related to only specific clients and that there is no evidence so far of broader exposure across other branches or retail customers.
The investigation is currently ongoing, with the final financial impact yet to be understood. The bank in a recent exchange filing has stated that it is fully cooperating with regulators and law enforcement authorities.
As of now, no major new developments have emerged beyond the initial disclosure. However, investor sentiment has turned cautious, leading to heavy selling pressure on idfc first bank stock.
Q3FY26 Financial Results
The fraud case has overshadowed the bank’s otherwise strong financial performance in recent quarters.
Interestingly, IDFC First Bank had reported strong numbers for the quarter ended December 2025.
The bank posted a 48 per cent YoY jump in net profit to Rs 503 crore in Q3FY26, compared to Rs 339 crore in the same quarter last year.
Total income rose to Rs 12,542 crore from Rs 11,123 crore a year earlier. Interest income increased to Rs 10,417 crore, up from Rs 9,343 crore.
Net Interest Income (NII) climbed to Rs 5,492 crore, compared with Rs 4,902 crore in the year-ago period, reflecting steady growth in its core lending operations.
However, Net Interest Margin (NIM) moderated to 5.76 per cent from 6.04 per cent, amid a shifting interest rate environment. On the asset quality front, gross NPAs improved to 1.69 per cent from 1.94 per cent last year. Net NPAs edged up slightly to 0.53 per cent from 0.52 per cent.
Post the announcement of its results, IDFC First Bank received a Neutral rating from brokerage house Motilal Oswal Financial Services.
In its report, Motilal Oswal said, “IDFCFB reported a largely in-line quarter, led by steady business growth, expanding margins, and a stable asset quality trajectory. We broadly maintain our earnings estimates and project a PAT CAGR of 73% over FY26-28, leading to an RoA/RoE of 0.9%/8.8% for FY27E. We reiterate our Neutral rating with a target price of Rs. 90, based on 1.4x Sep’27E ABV.”
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