IDFC First Bank share down reason became a major talking point in the stock market on Monday after the bank’s shares hit the 20% lower circuit following the disclosure of a massive ₹590 crore fraud at its Chandigarh branch.
Shares of IDFC First Bank tumbled sharply on the BSE, touching the lower circuit at ₹66.85. Around 10:25 AM, the stock was trading 18.84% lower at ₹69.10 on the NSE, down by 15.73 points. On the Bombay Stock Exchange, the share price slipped 16.50% to ₹69.77. This steep fall came as a shock to investors, especially since the stock had closed last week in the green at ₹83.51 on the NSE, gaining 0.64%.
What Is the IDFC First Bank Share Down Reason?
The main IDFC First Bank share down reason is the disclosure of a suspected ₹590 crore fraud involving certain employees at the bank’s Chandigarh branch. According to an exchange filing, some officials allegedly carried out unauthorised transactions from accounts linked to the Haryana government.
The bank has suspended four employees believed to be connected to the matter. It has also filed a police complaint and stated that strict disciplinary, civil, and criminal action will be taken against those responsible, including any external individuals involved.
How the Fraud Came to Light
The problem came to light when the Haryana government asked the bank to close its account and move the money to another bank. While checking and matching the records, the bank found differences between its own records and the balances shown by the government departments.
From February 18 onward, multiple Haryana government entities contacted the bank regarding their accounts. This led to the discovery of additional mismatches. The bank said that the problem was limited to some government-related accounts at its Chandigarh branch. It also clearly stated that other customers of the branch are safe and not affected by this issue.
Bank’s Next Steps
To address the situation, the bank has:
- Sent recall communications to beneficiary banks
- Requested lien marking on suspicious accounts
- Initiated steps to appoint an independent external agency for a detailed forensic audit
The bank emphasized that it is taking the matter seriously and is committed to maintaining transparency and accountability.
Market Reaction and Investor Sentiment
The news of the fraud came out suddenly and this badly hurt investor confidence. Many investors became worried after hearing the update. Because of fear and uncertainty, they started selling their shares quickly. This heavy selling created panic in the stock market and led to a sharp fall in the share price. The sharp fall shows that banking stocks are very sensitive to issues related to rules, compliance, and management problems.
As the investigation is still going on, investors will keep a close watch on new updates from the bank. They will especially look for details about the forensic audit and how much money can be recovered.
Right now, the IDFC First Bank share down reason is clearly connected to the ₹590 crore fraud case and the uncertainty about its financial loss and damage to the bank’s reputation.
Also Read: IDFC First Bank Chandigarh Branch News: ₹590 Crore Fraud Detected, 4 Officials Suspended