IDFC First Bank Share Price Falls Over 15% After ₹590 Crore Suspected Fraud Disclosure

IDFC First Bank Share Price in Red

Despite the broader upmove, IDFC FIRST Bank moved sharply lower. The stock fell steeply after the lender disclosed a suspected fraud of about ₹590 crore, linked to a cluster of Haryana government–related accounts.

IDFC First Bank Fraud Case of ₹590 Crore

The sequence began with a Government of Haryana circular dated February 18, 2026, stating that IDFC First Bank and AU Small Finance Bank were de-empanelled for government business in the state “until further notice.” The circular instructed departments and organisations not to park or route government funds through these banks and to begin transferring or closing existing balances and accounts.

Discrepancies Found During Account Closure Requests

After the circular, the bank received a request from a Haryana government department to close an account and transfer funds to another bank. During the closure process, it found a mismatch between the amount mentioned in the request and the balance reflected in the account.

As other Haryana-linked entities approached the bank with account-related requests, similar inconsistencies surfaced—differences between balances recorded by the bank and balances communicated by the concerned entities.

IDFC First Bank’s Initial Assessment and Scope of Issue

Based on a preliminary internal review, the bank said the matter appears limited to a specific set of government-linked accounts in Haryana that were operated through a Chandigarh branch. It added that the issue does not spill over to other customers of that branch.

The total amount under reconciliation across the identified accounts is estimated at around ₹590 crore, with the final impact dependent on further validation of claims, additional information, and recoveries (including through lien marking and legal steps).

Steps Taken by The Bank So Far

The bank has listed multiple actions, including:

• Suspending four officials suspected to be involved, pending investigation
• Escalating the matter to board-level oversight, including the Special Committee monitoring fraud cases, and updating the audit committee and board
• Filing a police complaint and cooperating with investigating agencies
• Informing statutory auditors
• Sending recall requests to beneficiary banks to mark liens on balances in suspicious accounts

Forensic Audit to Be Conducted By KPMG

In a later update, the bank said it has appointed KPMG to begin an independent forensic audit, in line with applicable disclosure requirements.

IDFC First Bank Share Price Action and Trading Volumes

On Monday, February 23, 2026, IDFC FIRST Bank shares were down over 15%. More than 40 crore shares changed hands on the NSE earlier in the session, marking the stock’s highest single-day trading volume since 2023.