IDFC First Bank shares crash: Govt loses Rs 1,100 cr, retailers take Rs 4,000 crore hit
Investors took a major blow on Monday as shares of IDFC First Bank tanked 20 per cent in the early trading session after the private lender reported unauthorized and fraudulent activities.
- Feb 23, 2026,
- Updated Feb 23, 2026 11:47 AM IST
IDFC First Bank shares crash: Investors took a major blow on Monday as shares of IDFC First Bank Ltd tanked as much as 20 per cent in the early trading session after the private lender reported unauthorized and fraudulent activities linked to Haryana government accounts worth Rs 590 crore at a branch in Chandigarh.
Following the disclosure, shares of IDFC First Bank cracked as much as 20 per cent to Rs 66.85, hitting the third circuit limit for the F&O counters. However, the stock did not fall further and rebounded to Rs 70-levels with its market capitalization hovering around Rs 61,000 crore. The stock is down nearly 20 per cent from its 52-week high at Rs 87, hit earlier this month.
The carnage in the IDFC First Bank dented the pockets of investors including retailers, mutual funds and government of India too. The President of India held 66,65,70,000 equity shares, or 7.75 per cent stake in IDFC First Bank as of December 31, 2025. Value of this holding was down more than Rs 1,100 crore to Rs 4,456.02 crore on Monday.
Similarly, mutual funds, who owned 93,99,28,455 equity shares or 10.93 per cent take in the lender, had their value eroded by 1,570 crore to Rs 6,283.42 crore as of day's lows. Retail investors owned 2,39,82,95,868 equity shares, or 27.9 per cent stake in the troubled lenders and took a notional blow of 4,007.55 crore on the sidelines of the crisis.
V Vaidyanathan, MD and CEO of IDFC First Bank said the bank would scan every nook and corner for any process gaps or employee-collusion fraud and would make the necessary amendments to contain them, while addressing a concall with investors and analysts. He became MD and CEO of IDFC First Bank in December 2018 following the merger of Capital First with IDFC Bank.
The alleged fraud came into light after the bank received a request from a particular Department of Haryana Government for closure of its account and transfer of funds to another bank. The lender has initiated an investigation, and the suspected employees have been placed under suspension. The bank has appointed KPMG to conduct an independent forensic audit in this matter.
Deven Choksey, MD of DR Choksey Finserv said that IT infrastructure has become a quintessential part of these banks to have proper surveillance and governance mechanisms to prevent such issues. Companies with large balance sheets will be able to cope-up with such issues in a better-way while small and mid-sized companies may continue to face issues due to IT infra.
Independent market expert Arun Kejriwal said that the current reaction in the stock price is a market reaction and the lender may remain under-pressure in the coming months as customers and account holders may switch their money on the back of shaken confidence.
Choksi cautioned investors on putting their money in select pockets of midcap and smallcap segment, while Kejriwal suggested investors should avoid this stock from a long-term perspective, while intra-day punts may be considered by traders who are looking for some adventure in this beaten down counter.
IDFC First Bank shares crash: Investors took a major blow on Monday as shares of IDFC First Bank Ltd tanked as much as 20 per cent in the early trading session after the private lender reported unauthorized and fraudulent activities linked to Haryana government accounts worth Rs 590 crore at a branch in Chandigarh.
Following the disclosure, shares of IDFC First Bank cracked as much as 20 per cent to Rs 66.85, hitting the third circuit limit for the F&O counters. However, the stock did not fall further and rebounded to Rs 70-levels with its market capitalization hovering around Rs 61,000 crore. The stock is down nearly 20 per cent from its 52-week high at Rs 87, hit earlier this month.
The carnage in the IDFC First Bank dented the pockets of investors including retailers, mutual funds and government of India too. The President of India held 66,65,70,000 equity shares, or 7.75 per cent stake in IDFC First Bank as of December 31, 2025. Value of this holding was down more than Rs 1,100 crore to Rs 4,456.02 crore on Monday.
Similarly, mutual funds, who owned 93,99,28,455 equity shares or 10.93 per cent take in the lender, had their value eroded by 1,570 crore to Rs 6,283.42 crore as of day's lows. Retail investors owned 2,39,82,95,868 equity shares, or 27.9 per cent stake in the troubled lenders and took a notional blow of 4,007.55 crore on the sidelines of the crisis.
V Vaidyanathan, MD and CEO of IDFC First Bank said the bank would scan every nook and corner for any process gaps or employee-collusion fraud and would make the necessary amendments to contain them, while addressing a concall with investors and analysts. He became MD and CEO of IDFC First Bank in December 2018 following the merger of Capital First with IDFC Bank.
The alleged fraud came into light after the bank received a request from a particular Department of Haryana Government for closure of its account and transfer of funds to another bank. The lender has initiated an investigation, and the suspected employees have been placed under suspension. The bank has appointed KPMG to conduct an independent forensic audit in this matter.
Deven Choksey, MD of DR Choksey Finserv said that IT infrastructure has become a quintessential part of these banks to have proper surveillance and governance mechanisms to prevent such issues. Companies with large balance sheets will be able to cope-up with such issues in a better-way while small and mid-sized companies may continue to face issues due to IT infra.
Independent market expert Arun Kejriwal said that the current reaction in the stock price is a market reaction and the lender may remain under-pressure in the coming months as customers and account holders may switch their money on the back of shaken confidence.
Choksi cautioned investors on putting their money in select pockets of midcap and smallcap segment, while Kejriwal suggested investors should avoid this stock from a long-term perspective, while intra-day punts may be considered by traders who are looking for some adventure in this beaten down counter.