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Highlights
- IDFCFIRSTB share price at ₹68.76, down 17.65% in one month.
- Fraud at Chandigarh branch impacts ₹590 crore in Haryana government-linked accounts.
- Multiple brokers maintain buy/add ratings with target prices between ₹80–100.
IDFC First Bank Ltd (NSE:IDFCFIRSTB) saw its share price decline following the disclosure of fraudulent activities at its Chandigarh branch. The stock traded at ₹68.76 on 24 February, down ₹1.28 (1.83%) for the day, marking a 17.65% decline over the past month. Despite the drop, several brokers have maintained positive ratings, seeing potential upside in the stock.
Fraud Incident Sparks Market Reaction
On 21 February 2026, IDFC First Bank disclosed an incident involving unauthorized activities by certain employees at its Chandigarh branch. The issue was confined to specific Haryana government-linked accounts, with the aggregate amount under reconciliation estimated at approximately ₹590 crore.
The bank immediately suspended four employees, initiated disciplinary and legal action, filed complaints with the police, and informed statutory auditors. An independent forensic audit by KPMG was subsequently appointed on 22 February to validate the matter.
On 23 February, the bank clarified that the price movement was linked to the fraud disclosure, not any de-empanelment by Haryana government authorities, stressing that the bank routinely engages with various state and central governments in ordinary course operations.
Broker Ratings Signal Upside Potential
Despite the price dip, analysts see a buying opportunity:
- Motilal Oswal Securities Ltd: Neutral rating, target price ₹80
- Emkay Global Financial Services Ltd: Add rating, target price ₹95
- BOB Capital Markets Ltd: Buy rating, target price ₹82
- Investec Bank (UK) & Jefferies: Buy ratings, target prices ₹92 and ₹100, respectively
Regulatory and Forensic Measures
The bank has taken multiple steps to address the issue:
- Suspended four suspected employees pending investigation
- Convened the Special Committee of the Board for monitoring fraud
- Informed statutory auditors and regulatory authorities
- Filed complaints with police and other law enforcement agencies
- Appointed KPMG for independent forensic audit
- Initiated lien marking on suspicious beneficiary accounts
These measures aim to limit exposure, secure recoveries, and strengthen internal controls.
The IDFC First Bank share price declined following the Chandigarh branch fraud disclosure, but brokers view the dip as an opportunity for investors. With robust internal controls, swift regulatory reporting, and forensic audit in progress, analysts see potential upside, assigning target prices between ₹80 and ₹100.
Frequently Asked Questions
- Why did IDFC First Bank’s share price fall recently?
The decline followed disclosure of fraudulent activities at its Chandigarh branch affecting Haryana government-linked accounts. - How much is the estimated impact of the fraud?
The preliminary assessment estimates ₹590 crore across the affected accounts, with recoveries and legal outcomes still pending. - What is the broker outlook for IDFC First Bank?
Brokers including BOB Capital Markets, Investec Bank (UK), and Jefferies have issued buy ratings, with target prices ranging from ₹80 to ₹100.
Meta Title
IDFC First Bank Share Falls on ₹590 Crore Fraud; Brokers See Upside
Meta Description
IDFCFIRSTB falls 17.65% over a month after Chandigarh branch fraud disclosure. Brokers maintain buy/add ratings with target prices ₹80–100, citing recovery potential.
Keywords
IDFC First Bank, NSE IDFCFIRSTB, India banking, stock drop, share price, Haryana fraud, KPMG forensic audit, broker buy rating, target price