IDFC First Bank Shares Plunge Amid ₹590 Crore Fraud at Chandigarh Branch; Fraud Discovery Sends Shares Tumbling
IDFC First Bank uncovered unauthorized transactions resulting in a ₹590 crore fraud at its Chandigarh branch, affecting Haryana government accounts. The discrepancies came to light when the department requested account closure and fund transfer, revealing a significant shortfall. The bank confirmed that the fraud occurred through collusion between branch employees and external partners, who exploited the branch as a base for covert financial manipulation.
IDFC First Bank shares dropped nearly 20% as the market reacted to the news, hitting an intraday low of ₹66.80 on the NSE and ₹66.85 on the BSE on February 23, 2026. Panic ensued as 1.94 crore sell orders accumulated with no buyers in sight. Investors scrambled to reassess risk, while market experts awaited the results of the forensic audit and ongoing legal investigations to determine whether the stock’s decline was temporary or indicated a longer-term impact.
IDFC First Bank Shares Take a Hit: Amid Fraud, What Went Wrong
- Modus Operandi: Fraudsters used forged cheques and fake authorization letters, manually processed to bypass electronic controls.
- Accounts Affected: Only Haryana government-linked accounts at the Chandigarh branch were impacted- other customers remain safe.
- Scope: The bank confirmed no effect on regular customers, keeping the chaos contained.
Market Reaction: The revelation sent IDFC First Bank shares tumbling almost 20%, as investors panicked over the scale and audacity of the scam.
IDFC First Bank Takes Swift Action After ₹590 Crore Fraud: Suspensions, Audits, and Legal Moves
IDFC First Bank is actively fighting the Chandigarh branch scam, which involves ₹590 crore in losses. The bank suspended four employees involved in the fraudulent activities and hired KPMG to conduct a full forensic investigation to reveal all concealed aspects of the case. It has initiated legal action against the suspects by filing police reports and pursuing both civil and criminal proceedings. To secure the stolen assets, the bank requested its partner banks to place liens on all accounts showing signs of suspicious activity.
The board’s Special Committee began overseeing the investigation on February 20. IDFC First Bank stated that the final results will depend on the recovery process, verification of claims, and legal proceedings, while investors closely watch the situation. The bank is making every effort to safeguard government funds and rebuild market trust.
IDFC First Bank Share: Market Awaits Resolution As Stock Underperforms
| Parameter | Details |
|---|---|
| Bank | IDFC First Bank |
| Share Price | ₹69.13 (as of 10:12 AM, 23 February 2026) |
| Change | Down 17.22% |
| Market Trend | Continues underperforming banking indices |
| Outlook | Cautious; awaiting forensic audit results and legal resolution to determine stock stabilization |
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Analyst notes: Jefferies advised strengthening operational controls; Investec noted the final impact depends on investigations and recoveries.
(With Inputs From Reports)
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