IDFC First Bank crashes 18% as fraud news hits markets

Core Viewpoint - IDFC First Bank's shares experienced a significant decline following the disclosure of a ₹590 crore fraud at its Chandigarh branch, leading to heavy sell-side pressure and a notable drop in stock price [1][2]. Group 1: Stock Performance - The stock traded at ₹67.97 on the NSE, down 18.61% from the previous close of ₹83.51, with an opening price of ₹75.16 and hitting a lower circuit band at ₹66.80 [1]. - The stock has decreased over 20% year-to-date and approximately 18% in the past week, although it remains about 12% higher on a one-year basis [6]. Group 2: Fraud Details - The fraud, involving certain employees at the Chandigarh branch and specific Haryana government-linked accounts, was disclosed on February 21, with the bank filing a police complaint and informing its regulator and statutory auditors [5]. - The bank has initiated lien marking on beneficiary accounts and appointed KPMG to conduct an independent forensic audit [5]. Group 3: Financial Impact - Nomura indicated that the ₹5.9 billion fraud represents 28% of the FY26 forecast profit and 19 basis points of the CET-1 ratio, which was 14.23% as of December 2025 [2]. - SBI Securities described the situation as negative in the short to medium term, highlighting a mismatch between actual balances and those communicated to account holders, along with the suspension of four officials [4].