IDFC First BankShares of IDFC First Bank tanked 20% on Monday before ending that day at Rs 70.09, down 13%. The stock fell after the lender informed exchanges that certain employees at its Chandigarh branch were allegedly involved in fraudulent transactions amounting to Rs 590 crore from accounts linked to the Haryana government. The bank has suspended four officials and said that it will pursue strict disciplinary action. ...

Instead of relying solely on telephonic verification, the bank will trigger an alert on the customer’s registered mobile app, requiring them to log in and digitally approve the transaction within a stipulated time window before it is processed. The lender described the move as an “extra control” to strengthen safeguards around large-value transactions and reduce the scope for unauthorised activity at the branch level.“We will implement an explicit system based on confirmation for high-value, branch-based t ...

The South Asian nation is not considering backing away from the agreement struck earlier this month, under which it secured lower US tariffs on its exports and signaled intent to buy $500 billion of American goods over five years, they said, asking not to be named because the matter is sensitive.Also Read: India, China among winners after US court blocked Trump tariffs A team of Indian negotiators postponed a scheduled visit to Washington to finalize the interim deal after the verdict. India has tapered pu ...

Core Viewpoint - AU Small Finance Bank (AU SFB) is actively engaging with the Government of Haryana to understand the reasons behind its de-empanelment from conducting government business and is working towards re-empanelment, following a significant drop in its share price by up to 7% during trading hours [1]. Group 1: De-empanelment Details - On February 18, 2026, the Haryana government de-empanelled both IDFC First Bank and AU SFB from government business, prohibiting any government funds from being deposited or transacted through these banks [2]. - The finance ministry of Haryana noted that certain banks, including AU SFB, were not following instructions to place funds in higher interest-bearing deposits, leading to lower returns [3]. Group 2: Internal Review and Communications - AU SFB received a communication on February 16, 2026, from a Haryana government department requesting account opening and transaction details for a specific account, to which the bank complied [4]. - A subsequent communication on February 18, 2026, sought information regarding suspected unauthorized transactions between a government account and another customer account, prompting AU SFB to initiate an internal review [5]. Group 3: Financial Transactions and Audit - The government account in question was initially credited with ₹25 crore from a large private sector bank, with an additional ₹47 crore received from IDFC First Bank through multiple transactions [6]. - Out of the total credits, ₹47 crore were transferred to a customer account through 14 transactions, all of which were authorized and executed as per the department's instructions [6]. - AU SFB maintains a complete audit trail of all transactions and has submitted all relevant documentation to the government department, indicating no current signs of financial impact or fraudulent activity [7]. Group 4: Impact on Deposits - As of February 17, 2026, AU SFB had total deposits of ₹735 crore from the Government of Haryana, which decreased to ₹538 crore by February 21, 2026, representing 0.4% of the bank's overall deposits as of December 31, 2026 [8].

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IDFC First Bank on Monday said it is engaging with various investigative agencies to recover ₹590 crore lost due to a fraud at its Chandigarh branch, where the Haryana government had multiple accounts. The bank’s MD, CEO V. Vaidyanathan says the lender will “spare no one” as it suspects that the bank’s employees colluded with external parties to commit the fraud.“This is basically a case where debit instructions came supposedly from the client, which clearly indicates fraudulent activity. Our people have p ...

The ₹590-crore fraud involving Haryana Government accounts is the result of a collusion between employees of the IDFC Bank and external parties, its Managing Director and Chief Executive V. Vaidyanathan said on Monday (February 23, 2026).In a specially convened call for investors and analysts ahead of the opening of the equity markets, Mr. Vaidyanathan said the bank will take some provisions as a result of the fraud and in line with its policies to recognise any stress upfront.However, the same is unlikely ...

Following the decline, LIC, which holds 20,23,69,591 shares in the bank, saw the value of its investment fall by about Rs 338 crore in a single session. The Government of India, which owns 66,65,70,000 shares, suffered a larger notional erosion of around Rs 1,114 crore.Together, the two public institutional shareholders lost roughly Rs 1,452 crore in market value as investors reacted to the disclosure. The broader sell-off wiped out nearly Rs 14,000 crore in market capitalisation, marking the stock’s steep ...

What began as a routine account closure request has quickly evolved into a multi-agency investigation, a forensic audit, and a sharp erosion of investor confidence.The trigger that exposed the mismatchThe situation came to light on February 18, when the Haryana Finance Department issued a circular de-empanelling IDFC First Bank and AU Small Finance Bank for government business.“IDFC First Bank and AU Small Finance Bank are hereby de-empanelled for government business in Haryana with immediate effect till f ...

The RBI is watching the development around the ₹590 crore fraud at IDFC First Bank and there is no systemic issue, Governor Sanjay Malhotra said on Monday. IDFC First Bank had on Sunday disclosed a ₹590-crore fraud committed by certain employees and others at a particular branch in Chandigarh in a specific set of Haryana State government accounts. "We are watching the development, there is no systemic issue," Malhotra told reporters at a press briefing after the customary post budget address by Finance Mini ...