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. In a specially convened call for investors and analysts ahead of opening of the equity markets, 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.Also read However, the same is unlikely to have a major im ...

Group 1: Tariff and Geopolitical Concerns - The US tariffs have caused short-term market fluctuations, but the agreed baseline tariff rate of 18% is seen as manageable, with a potential interim rate of 15% being beneficial for Indian exporters [1][8] - The escalating tensions between the US and Iran pose a significant risk, as a sustained geopolitical crisis could lead to higher oil prices, impacting India's current account deficit and inflation [2][8] Group 2: Market Outlook and Investment Strategy - Despite market headwinds, the long-term outlook for India remains positive, supported by trade frameworks with the US and EU, domestic tax cuts, and post-budget clarity, with setbacks viewed as delays rather than derailments [2][8] - The IT sector is believed to have largely bottomed out, with approximately 90% of the valuation derating completed, making IT stocks attractive for income-oriented portfolios due to their dividend yields of 5-6% [5][8] - Investors are advised to treat market volatility as an opportunity to accumulate quality stocks at better prices [2][8] Group 3: Banking Sector Insights - The ₹590 crore fraud at IDFC First Bank is considered an isolated incident, not indicative of systemic issues within the midcap banking sector, and the bank remains well-capitalized after raising ₹7,500 crore [6][8] - Smaller private and new-age banks have a structural advantage due to their leaner deposit bases, allowing them to attract deposits more effectively compared to larger banks [6][8] - Among preferred banking picks, AU Small Finance Bank, South India Bank, and CSB Bank are highlighted, despite AU's higher valuation [6][8]

IDFC First bank has filed police complaints, informed regulators and statutory auditors, and begun recovery measures.The Rs 590 crore fraud linked to Haryana government accounts stemmed from collusion between certain IDFC First Bank employees and outside entities, Managing Director and Chief Executive Officer V. Vaidyanathan said on Monday.Speaking during a special call with investors and analysts before the equity market opened, Vaidyanathan said the bank would make provisions in accordance with its policy ...

Addressing a joint press conference alongside The private bank discovered fraudulent activity involving approximately IDFC said it has launched an "Based on the preliminary internal review conducted, the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch. The aggregate amount under reconciliation across the identified accounts at the abovementioned Branc ...

However, In a circular, the state finance department said, "IDFC First Bank and AU Small Finance Bank are hereby de-empanelled for government business in Haryana with immediate effect till further orders."The move follows IDFC First Bank’s disclosure of a Rs 590-crore fraud involving its employees and others in accounts linked to the Haryana government.AU Small Finance Bank, in a regulatory filing late Sunday, said the government account under question was opened after completing all required Live EventsAU ...

Nifty Bank index began today’s session lower at 61,146 compared to last week’s close of 61,172. However, it recovered after opening and is now trading at 61,320, up 0.25 per cent so far. The advance-decline ratio stands at 10-4 now, showing a bullish bias. Union Bank of India (up 2.7 per cent) and Axis Bank (up 2.4 per cent) are the top gainers. At the other end, IDFC First Bank tumbled 17 per cent and is the top loser. This is followed by AU Small Finance Bank, down 6.4 per cent.Nifty PSU Bank has advanced ...

Shares crashed as much as 20%, the steepest fall since March 2020, after the private lender disclosed that employees at its Chandigarh branch had carried out unauthorized transactions in accounts linked to the Haryana state government, creating a deposit balance discrepancy of approximately Rs 590 crore.The fraud amount eclipses the bank's Q3 net profit of Rs 503 crore. UBS estimated the suspected amount at roughly 22% of Jefferies said the bank will need to strengthen operational controls and clarify that ...

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].

Market Overview - Markets opened positively following the US Supreme Court's ruling against President Trump's emergency tariffs, with the Sensex rising to ₹83,336.04, up ₹521.33 or 0.63% [1] - The Nifty 50 also saw gains, climbing to ₹25,731.00, an increase of ₹159.75 or 0.62% [1] Tariff Changes - The Supreme Court's decision invalidated approximately $160–175 billion in tariffs imposed under the International Emergency Economic Powers Act (IEEPA) [2] - President Trump responded by invoking Section 122 of the Trade Act of 1974, imposing a new 10–15% global tariff for 150 days, which is expected to face legal challenges [2] - For India, this effectively reduces tariffs on exports to around 10% [2] Market Sentiment and Technical Analysis - The US Supreme Court's ruling is viewed positively, but it may not lead to a sustained market rally as fundamentals are still key [3] - The Nifty's immediate pivot is at 25,500, with resistance levels at 25,700–25,750; a move above 25,800 could lead to 26,000 [3] Sector Performance - Banking stocks led the market recovery, with the Bank Nifty closing at ₹61,172, up 432 points, and trading above key moving averages [4] - Among Nifty 50 gainers, Adani Ports rose by 2.86% to ₹1,554.80, and Axis Bank increased by 2.02% to ₹1,395.90, indicating strength in financial services and infrastructure [5] Underperformers - ONGC was the worst performer, falling 2.14% to ₹272.70 due to rising crude oil prices amid US-Iran tensions [6] - IT stocks like Infosys and Wipro also faced declines, contributing to a broader technology sector downturn [6] Institutional Flows - Foreign Institutional Investors sold equities worth ₹934 crore, while Domestic Institutional Investors bought equities worth ₹2,637 crore [7] Corporate Developments - IDFC First Bank reported a significant internal fraud estimated at ₹590 crore, prompting a forensic audit [8] Market Caution - Analysts caution that market sentiment may remain weak as long as it stays below the 50-day SMA of 25,770/83,200 [9]

Group 1 - Indian shares are expected to open higher following the US Supreme Court's ruling against Trump's tariffs, which has led to a temporary increase in tariffs on US imports from 10% to 15% [1][2] - The Indian trade delegation's plans to visit Washington have been delayed due to the uncertainty surrounding tariffs, which were intended to finalize an interim trade deal [3] - Domestic equities are anticipated to start positively, with export-oriented sectors likely to benefit from supportive trade developments [4] Group 2 - IDFC First Bank may experience a decline after announcing an investigation into a suspected fraud of $65 million involving local government accounts [5] - RailTel has received a letter of intent for a modernization project in Maharashtra valued at 11.36 billion rupees ($125.2 million) [7] - Vikram Solar has signed a 20 billion-rupee agreement with Jupiter International to procure 2 GW of solar cells [7]