Financial Highlights – IDFC First Bank (NSE: IDFCFIRSTB) Slides 18% After ₹5.9 Billion Fraud Disclosure at Chandigarh Branch

• 18% Share Slide: IDFC First Bank shares fell around 10% in pre-market trade and extended losses to nearly 18% after market open.
• ₹5.9 Billion Fraud: Suspected irregularities of ₹5.9 billion (USD 65 million)
• Net Worth Impact: Amount equals around 9% of the bank’s net worth.
• Profit Sensitivity: Nearly 20% of FY26 estimated pre-tax profit.
• Chandigarh Branch: Issue linked to government-related accounts at one branch.
• Limited Scope: Bank clarified the matter is not system wide.
• Employees Suspended: Four staff members placed under suspension.
• Forensic Audit Ordered: Detailed investigation initiated to assess full impact.

IDFC First Bank (NSE: IDFCFIRSTB)

IDFC First Bank Limited fell 18.24% to ₹68.28 on 23 February 2026 after disclosing suspected fraudulent transactions of ₹5.9 billion at its Chandigarh branch. The private sector lender, with a strong presence in retail and MSME banking, has delivered steady loan growth, improved asset quality, and a strengthening CASA ratio, reflecting operational progress. However, the exposure is equivalent to nearly 20% of FY26 estimated pre-tax profit, raising concerns around internal controls and oversight. While management clarified that the issue is confined to specific government-linked accounts, near-term sentiment may remain cautious.

Haryana Bars IDFC First Bank, AU SFB After ₹590 Crore Fraud Disclosure; Shares Tumble 18%

The Haryana government has de-empanelled IDFC First Bank and AU Small Finance Bank from handling state-related transactions following an alleged ₹590 crore irregularity linked to government accounts operated through a Chandigarh branch. Authorities have directed all departments to withdraw balances, close accounts, and cease further dealings with the two lenders until further notice. The finance department also highlighted lapses in fixed deposit execution that may have reduced returns. Meanwhile, four officials have been suspended, and a forensic audit has been initiated. IDFC First Bank shares ended 15% lower at ₹70.98 on the NSE.

Technical View: IDFC First Bank at ₹68 After Sharp Fall: Can the Stock Stabilise Below the 50-Day SMA?

From a technical perspective, IDFC First Bank is trading around ₹68.28, remaining well below its 50-day Simple Moving Average of ₹83.61, which has now become an overhead resistance zone. The recent sharp decline has disrupted the earlier consolidation phase, with expanded volumes reflecting heightened activity. The 14-day RSI has dropped to 21.86, placing momentum in deeply oversold territory and indicating stretched conditions. Immediate support is positioned near ₹62.00, followed by ₹55.00. On the upside, ₹75.00 marks the first recovery zone, while the ₹85.60 level remains a key barrier for structural stabilisation.

Bottom Line: IDFC First Bank’s Governance Test After ₹590 Crore Shock — Can Stability Return?

IDFC First Bank faces a critical phase following the ₹590 crore irregularity and sharp price correction. While core retail growth and asset quality trends remain intact, governance oversight and internal control mechanisms will be closely tracked to assess recovery prospects.