Shares of India’s IDFC First Bank Ltd. fell by a fifth on Monday after ₹590 crore fraud was detected at its branch in Chandigarh.
IDFC First Bank’s share price fell as much as 19.99% to hit an intraday low of ₹66.85 even as the benchmark Sensex rose 0.65%.
The IDFC First Bank fraud in Chandigarh is linked to government bank accounts of Haryana. At least four staff members have been suspended. A forensic audit is underway.
According to UBS, the fraud amount — ₹590 crore — is about 22% of IDFC First Bank’s net profit in FY26, even the private lender claimed the impact is just 1% of its net worth. Morgan Stanley saw a 20% hit to the bank’s bottom line in FY26.
IDFC First Bank will now have to reassure investors that the issue had not spread to other clients and that the matter did not appear to be systemic, Jefferies said.
