IDFC First Bank stock crashes 20%: Share hits lower circuit after Rs 590 crore fraud in Haryana government accounts
Times of India
by TOI BUSINESS DESKFebruary 23, 2026
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IDFC First Bank's stock price plummeted by over 20% on Monday, hitting the lower circuit at Rs 66.85 on the BSE after revealing a massive Rs 590 crore fraud linked to its Chandigarh branch. The sharp decline came as investors reacted to the bank's disclosure of unauthorized transactions involving Haryana government accounts. By mid-morning, shares fell 18.84% to Rs 69.10 on the NSE, following a positive end last week where the stock had gained 0.64%.
The suspected fraud involved several employees at the Chandigarh branch who allegedly conducted unauthorized transactions from accounts tied to the Haryana government. The bank has suspended four officials and is conducting an internal investigation while pursuing legal action against those responsible. It has also filed a complaint with the police, sent recall notices to beneficiary banks, and requested lien marking on suspicious balances. An independent forensic audit is being planned to thoroughly examine the episode.
The issue arose when the Haryana government instructed the bank to close its account and transfer funds elsewhere. During reconciliation, discrepancies were spotted between the bank's recorded balances and figures reported by government entities. Additional mismatches were identified after multiple entities contacted the bank regarding their accounts starting February 18. The bank emphasized that the irregularities were confined to specific government-linked accounts at the Chandigarh branch, with other customers unaffected.
This incident highlights vulnerabilities in banking systems and raises concerns about internal controls and employee oversight. For readers interested in global financial news, this story underscores the risks associated with corporate fraud and the importance of robust regulatory frameworks. The case also serves as a cautionary tale for investors, reminding them of the potential risks tied
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Originally published on Times of India on 2/23/2026