IDFC First Bank Shares Hit Lower Circuit After ₹590 Crore Fraud Disclosure

Shares of IDFC First Bank plummeted 20% to hit the lower circuit limit of ₹66.80 following the disclosure of a significant fraud. The discrepancy involves accounts linked to the Haryana state government, totaling approximately ₹590 crore in suspected fraudulent activity. The bank has already filed a police complaint and notified the Reserve Bank of India (RBI) to initiate regulatory proceedings. According to an analysis by UBS, the amount involved represents roughly 22% of the bank's projected profit after tax for fiscal year 2026. This financial impact accounts for nearly 1% of the lender's net worth, triggering a sharp sell-off and heightened investor anxiety. The incident has raised serious concerns regarding internal controls and governance, weighing heavily on the broader NIFTY BANK index.