Shares of IDFC First Bank fell after the bank reported a potential 590-crore fraud on some of its Haryana government-related accounts at its Chandigarh branch.

The bank revealed that irregularities were found when a government department in Haryana asked the bank to close an account and transfer funds to a different bank. The transfer request was not equal to the account balance and, therefore, a more detailed research was conducted.

Key Highlights

• IDFC First Bank appointed KPMG for a forensic audit.
• Haryana de-empanelled IDFC First Bank and AU SFB.
• Both stocks reacted amid governance concerns.

To address the situation, IDFC First Bank has requested KPMG to do an independent forensic audit to investigate the irregularities in detail and bring transparency of the situation. The bank will ensure that it addresses the issue as soon as possible without compromising its integrity in its operation and investor trust.

IDFC First Bank’s shares had reached a 52-week high of ₹87 on January 2, 2026, and a 52-week low of ₹52.50 on April 7, 2025. Meanwhile, AU Small Finance Bank touched a 52-week high of ₹1,038.75 on February 19, 2026, and a 52-week low of ₹479 on March 18, 2025. Despite the challenges, both banks are committed to addressing the situation and ensuring continued trust from investors and clients.

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In addition to the forensic audit, the Haryana government has also put on temporary de-empanelling of IDFC First Bank, as well as AU Small Finance Bank, to transact any business related to the government. The government has instructed that balances and close accounts held in all state departments and organizations with the two banks be transferred.

Nevertheless, IDFC First Bank remains committed to accountability and transparency and have ensured that effective measures are promptly undertaken to preserve investor and client trust. Both banks are striving to work out the situation and provide further successful operation of their activity.