IDFC First Bank shares hit lower circuit in early deals; KPMG to probe Rs 590-crore fraud 

Shares of IDFC First Bank Ltd tumbled 20% in early deals today  after the bank disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government with the private sector lender.

IDFC First Bank shares hit a lower circuit of 20% to Rs 66.85  against the previous close of Rs 83.56. Market cap of the bank slipped to Rs 58,259 crore.  

In a regulatory filing, IDFC First Bank said it has disclosed the matter to the banking regulator and also filed a police complaint.

"Prima facie, unauthorised and fraudulent activities have been carried out by certain employees at a particular branch in Chandigarh in a specific set of Haryana state government accounts and potentially involving other individuals/entities/counterparties," the IDFC First Bank filing said.

"Four suspected officials have been placed under suspension pending investigation. The Bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law," added the bank 

Subsequently, the lender said it has appointed KPMG to initiate an independent forensic audit in this matter