IDFC First Bank Shares Slide 16%; Bank Says Fraud Not De-Empanelment Behind Fall
Mumbai: Shares of IDFC First Bank tumbled on Monday, closing 16.07% lower at ₹70.09 on the NSE after slipping as much as 20% intraday. The bank clarified in an exchange filing that the sharp fall was driven by a recently disclosed ₹590-crore fraud at its Chandigarh branch — not by any de-empanelment.
“The issue of today’s price movement… is not about de-empanelment but actually pertained to a fraud identified by the Bank and announced to the exchanges on February 21, 2026,” the lender said.
What the Bank Said
According to the filing, once discrepancies surfaced, the matter was escalated to the ‘Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF)’, as well as the Audit Committee and the Board. Police complaints were subsequently filed and relevant authorities informed under Regulation 30 of SEBI’s listing rules.
The bank also reiterated that it had appointed KPMG as an independent external agency to conduct a forensic audit — a step it says was already communicated to the exchanges.
How the Fraud Came to Light
The irregularities emerged after a Haryana government department sought closure of an account and transfer of funds to another bank. A mismatch between the stated amount and the account balance prompted a deeper review. IDFC First Bank estimated the aggregate amount under reconciliation across identified accounts at ₹590 crore.
Four officials suspected of involvement have been suspended pending investigation.
Market Reaction
The stock’s steep decline came despite a modest 0.55% gain in the Nifty index, highlighting investor concerns over governance and potential financial impact. While the bank stressed that routine de-empanelment interactions with state and central authorities were not the trigger, the episode has put the spotlight on internal controls and risk oversight.
Further updates are expected as the forensic audit progresses and law-enforcement probes continue.
News Source : Information for this article was gathered from a variety of reliable news outlets.
