Shares of IDFC First Bank plummeted by 20% on Monday as the bank disclosed fraudulent transactions amounting to around Rs 590 crore, reportedly involving its employees at the Chandigarh branch. The stock hit an intra-day low of Rs 66.85, opening 10% lower and further extending losses during trading hours.
The bank clarified that the fraudulent activities were limited to a specific group of Haryana government-related accounts at the Chandigarh branch. It has taken action by informing regulators, lodging a police complaint, and suspending four officials pending investigation.
According to the bank’s stock exchange filing, unauthorized activities were conducted by certain employees at the Chandigarh branch, potentially impacting a particular set of Haryana state government accounts and other entities. Independent brokerage estimates indicate that the suspected fraud represents about 0.9% of the bank’s net worth and 20% of its pre-tax profit for FY26.
