- IDFC First Bank was de-empanelled during regular govt interactions, not due to fraud
- A Rs 590-crore fraud at Chandigarh branch caused the bank's share price to plunge
- Bank reported fraud on Feb 21, 2026, and involved Special Fraud Monitoring Committee
IDFC First Bank Ltd. clarified that it had been de-empanelled as part of the bank's regular interactions with various state governments as well as the central government, according to an exchange filing on Monday.
The bank said it was the Rs 590-crore fraud identified in Chandigarh branch last week, which led to a slump in its share price in the morning and not the de-empanelment itself.
"The issue of todays' price movement in the securities of the Bank, as per our judgement, is not about de-empanelment but actually pertained to a fraud identified by the Bank and announced to the exchanges on February 21, 2026," the bank stated in its filing.
On the issue of fraud, IDFC First underlined after the initial assessment of the situation, the matter was taken to the 'Special Committee of the Board' for Monitoring and Followup of Cases of Frauds (SCBMF). This was followed by official police complaints filed by the Audit Committee and the Board.
"As regards the announcement of the fraud, the Bank immediately, on initial assessment of the situation, followed due process of taking the matter to the ‘Special Committee of the Board for Monitoring and Followup of Cases of Frauds (SCBMF), the Audit Committee and the Board, filed complaint with police authorities and informed requisite authorities. The Bank intimated the same to the stock exchanges on February 21, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the filing highlighted.
Moreover, the bank said the appointment of KPMG as an independent external agency for initiation of a forensic audit in this matter was also previously communicated to the exchanges.
Haryana Government Bank Fraud
IDFC First Bank informed the stock exchanges on Saturday about an incident involving unauthorised and fraudulent activities by certain employees at a particular branch in Chandigarh, with the aggregate amount under reconciliation across identified accounts estimated at Rs 590 crore.
The bank said that four of its suspected officials have been placed under suspension pending the investigation.
The fraudulent activity came to the fore when discrepancies were observed in the amount mentioned vis-à-vis the balance in the account after the bank received a request from a particular Department of Haryana Government for account closure and transfer of funds to another bank.
Share Price
IDFC First Bank's stock closed 16.07% lower at Rs 70.09 apiece on Monday, after plunging as low as 20.01% during the day on the NSE. This compares to a 0.55% advance in the Nifty index.
ALSO READ: IDFC First Bank Fraud: 'Old-School Forgery, Staff Collusion' — CEO Vows 'No One Will Be Spared'
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