IDFC First Bank Share Price in Focus: Stock Market Today Reacts After ₹590 Crore Fraud Disclosure

IDFC First Bank share price remained under pressure in the stock market today, a day after witnessing a sharp 16% fall. The sudden sell-off came after the bank disclosed a ₹590 crore fraud at its Chandigarh branch.

The news shook investor confidence. Selling pressure followed immediately. Markets don’t like uncertainty — and this was sudden.

Let’s break down what happened and what it means.

Market Performance: IDFC First Bank Share Price After 16% Fall

In the previous trading session, IDFC First Bank share price dropped more than 16%. The fall was sharp and quick.

In the stock market today, the stock tried to steady but remained weak.

• The scrip slipped 2.1% intraday
• Hit a low of ₹68.56 on BSE

The volatility signals continued nervousness among investors.

When a banking stock reacts this sharply, it is usually about trust. And this time, the issue was serious — a fraud disclosure involving government-linked accounts.

Main News: ₹590 Crore Fraud at Chandigarh Branch

The bank informed exchanges that a ₹590 crore discrepancy was detected at its Chandigarh branch.

Here’s what was disclosed:

• Total discrepancy: ₹590 crore
• ₹490 crore identified through reconciliation
• ₹100 crore estimated based on preliminary findings

The irregularities were linked to accounts connected to the Haryana Government.

According to the bank, the fraud appears to involve:

• Certain employees at the Chandigarh branch
• Possible connivance with external parties
• Specific Haryana government-linked accounts

The issue surfaced after a government department requested account closure and transfer of funds to another bank. That request triggered scrutiny. The reconciliation revealed discrepancies.

And that is when the larger issue came to light.

Impact on Government Banking Relationship

Following the disclosure, the Haryana Government took swift action.

A circular was issued stating:

• No government funds will be parked
• No deposits will be placed
• No investments or transactions will be routed

This applies to:

• IDFC First Bank
• AU Small Finance Bank

Until further orders.

This move added another layer of concern in the stock market today, as government-linked deposits form part of the banking ecosystem.

What the Bank Said About the Fraud?

IDFC First Bank clarified that the issue appears to be unauthorised and fraudulent transactions carried out at a single branch.

According to the management:

• The case is linked to employee-level misconduct
• External parties may also be involved
• The matter is being investigated internally and externally

Managing Director and CEO V. Vaidyanathan described it as a clear case of employee fraud during a conference call.

Four bank officials have been suspended pending investigation.

The matter was placed before the Special Committee of the Board for Monitoring and Follow-up of Cases of Fraud on February 20, 2026.

Forensic Audit and Legal Action

The bank has appointed KPMG to conduct a forensic audit.

Key details:

• Audit expected to take 4–5 weeks
• Police complaints have been filed
• Law enforcement agencies engaged
• Recovery actions initiated
• Lien marking across beneficiary accounts started

The bank also stated that the final financial impact will depend on:

• Validation of claims
• Recovery through lien marking
• Liabilities of other entities involved
• Outcome of legal proceedings

This means the full picture is still evolving.

Financial Context of the ₹590 Crore Mismatch

To put it into perspective:

• ₹5.9 billion (₹590 crore) is the reported discrepancy

No additional estimates or projections have been provided by the bank.

At this stage, the focus remains on investigation, recovery, and validation.

In the stock market today, such disclosures create short-term uncertainty because markets prefer clarity.

Why IDFC First Bank Share Price Reacted Sharply?

Banking stocks are sensitive. Especially when it comes to:

• Governance issues
• Fraud disclosures
• Government-linked accounts

The sharp fall in IDFC First Bank share price reflects:

1. Shock factor
2. Risk reassessment
3. Uncertainty around recovery

Investors reacted swiftly. That explains the 16% decline in a single session.

The continued weakness in the stock market today suggests that confidence will take time to rebuild.

What We Know So Far – Quick Snapshot

• ₹590 crore fraud detected
• Chandigarh branch involved
• Linked to Haryana government accounts
• ₹490 crore reconciled
• ₹100 crore preliminary estimate
• 4 officials suspended
• Forensic audit by KPMG underway
• Haryana government stops fresh transactions

These are confirmed disclosures so far.

Company Details: IDFC First Bank at a Glance

IDFC First Bank is a private sector lender with a growing retail banking presence.

The incident is currently described as branch-level and operational in nature. The forensic audit is expected to provide further clarity in the coming weeks.

Until then, developments around:

• Recovery
• Legal proceedings
• Audit findings

Will likely remain in focus.

Summary: IDFC First Bank Share Price Remains in Spotlight

The IDFC First Bank share price remains closely watched in the stock market today after the ₹590 crore fraud disclosure.

Here’s the core takeaway:

• A single-branch fraud was disclosed
• Government-linked accounts were involved
• Immediate regulatory and government action followed
• Forensic audit initiated
• Investigation and recovery process ongoing

Markets reacted sharply. Trust is central to banking.

Now, investors await clarity from the audit process and recovery steps.

For now, the story of IDFC First Bank share price is about transparency, accountability, and restoring confidence — one step at a time.

Source: Livemint