New Delhi, February 23, 2026 — Shares of IDFC First Bank experienced a sharp decline of 20% on Monday, marking their lowest level since October 2025, after reports of a ₹590 crore fraud surfaced. The plunge has resulted in significant losses for major shareholders, including the Government of India and the Life Insurance Corporation (LIC).
The bank’s stock opened at ₹75.16 on the National Stock Exchange (NSE), down 10% from the previous close of ₹83.51. Heavy selling pressure pushed the stock further down to ₹66.80, erasing over ₹14,300 crore in investor wealth within a single trading day.
The fall followed an official disclosure revealing that unauthorized activities by certain employees at a Chandigarh branch led to discrepancies in account balances, especially after Haryana state entities sought account closures. The bank announced that approximately ₹590 crore is under reconciliation, pending further investigation. Four employees have been suspended, and a forensic audit has been commissioned, with KPMG appointed to lead the inquiry.
The Haryana government also de-empanelled IDFC First Bank and AU Small Finance Bank from deposit parking schemes amid concerns over the fraud.
Financial analysts estimate the impact of the fraud on IDFC First Bank’s earnings to be significant but manageable. A UBS report suggests the ₹590 crore could be about 22% of the bank’s projected profit after tax for FY2026, with an estimated capital impact of around 1% of its net worth. Morgan Stanley estimates the potential profit hit at roughly 20%, while Macquarie analysts warn of increased scrutiny on government deposits, potentially leading to some funds shifting to PSU banks.
The fallout has severely affected shareholder wealth. The government of India, holding approximately 7.75% stake with around 666.57 million shares, saw a loss of about ₹1,113.83 crore based on the stock’s lowest point. LIC’s notional loss amounted to ₹338.15 crore, with the insurer holding 202.37 million shares or 2.35% stake. Other insurers such as ICICI Prudential and HDFC Life also faced losses of ₹299 crore and ₹317 crore, respectively.
Retail investors, holding around 15.06% of the bank’s shares, saw their portfolios shrink by approximately ₹2,163 crore.
Technical analysts warn of further downside, noting the stock has broken below critical support levels of 77–78 with high volume, signaling a shift from bullish to bearish momentum. The stock is trading below all major exponential moving averages, with the Relative Strength Index (RSI) at 23.83, indicating oversold conditions. Immediate support is seen near ₹66–67, with resistance around ₹77.
The incident raises concerns over corporate governance and risk management at IDFC First Bank, with investors closely watching for further developments.
