AU Small Finance Bank shares tank 8% on Haryana govt's action; here's what lender says 

Shares of AU Small Finance Bank tanked over 7% in early deals today after the bank said the Haryana Government communicated to the India's largest small finance bank about its de-empanelment for government business in Haryana.

AU Small Finance Bank shares fell 7.62% to Rs 950.50 against the previous close of Rs 1028.95. Market cap of the bank slipped to Rs 71,919 crore. 

The bank said on February 18, 2026, it received a separate communication from the department seeking information regarding suspected unauthorized transactions between the Government Account and another customer account (“Customer Account”) maintained with the Bank, said the lender. 

Finance Department, Govt. of Haryana, communicated to the Bank about its de-empanelment for government business in the State of Haryana.

The bank clarified on the development and said, "Based on available facts at this stage and preliminary review, there is no indication of any financial impact or any fraudulent activity towards the Bank."

The bank is holding an internal review on this matter. "To ensure a fair and transparent review, certain employees have been placed offduty," the bank said. 

"The Bank is also engaging with the Government of Haryana for assessing the reasons for de-empanelment (the de-empanelment order was received on February 18, 2026), and will fully cooperate with the Government and any other authorities, as required," it added.