IDFC Bank share price today opened in green on Tuesday after facing its biggest fall since March 2020. On Monday, the stock had crashed nearly 16% after the bank revealed a ₹590 crore fraud case.
At 9:18 AM, shares of IDFC First Bank were trading at ₹70.37, up 0.47% on the NSE. The small recovery came after heavy selling in the previous trading session.
What Caused the Fall in IDFC Bank Share Price Today?
The sharp fall happened after the bank admitted that a fraud of ₹590 crore took place at its Chandigarh branch. The fraud is related to Haryana government-linked accounts.
According to the bank, the fraud involved forged physical cheques. The management said there was no cyber attack or digital hacking. It was a case of cheque manipulation.
Managing Director and CEO V Vaidyanathan said the issue is limited to one branch in Chandigarh and a specific group of accounts. He also said the bank expects to remain profitable despite this loss.
Forensic Audit Ordered
To investigate the case, the bank has appointed KPMG to conduct a forensic audit. The audit report is expected within four to five weeks.
The bank has suspended employees suspected of involvement. It also said that it has insurance coverage of up to ₹35 crore for employee dishonesty.
Haryana Government’s Reaction
Haryana Chief Minister Nayab Singh Saini said in the Assembly that the money will “definitely come back.” He assured strict action against those responsible for the fraud.
What’s Next?
The bank said this problem happened in only one branch. It is not a problem in the whole bank. The bank will now make stricter rules for clearing big cheques to avoid such fraud in the future.
Investors are waiting for updates from the investigation. IDFC Bank share price today will move based on the new news. If the news is good, the share price may rise. If more problems are found, the price may fall again.
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