IDFC First Bank shares fall after CBI conducts searches, lender shares update on Rs 646 crore fraud case

The shares of IDFC First Bank fell nearly 1% on Monday morning after the Central Bureau of Investigation (CBI) conducted searches in six locations, while the private lender announced that it has received the forensic review report from KPMG regarding the fraud case worth Rs 646 crore at one of its branches in Chandigarh.

CBI conducted searches at six locations in Chandigarh, Panchkula and Delhi-NCR in connection with the alleged fraud case involving the siphoning of government funds from departments of the Haryana government and the Chandigarh administration.

The searches were held on Friday at premises linked to senior Haryana cadre public servants and Noida-based Vipam Consultancy Pvt Ltd and its director as part of an ongoing probe into the alleged misappropriation of funds parked with IDFC First Bank and AU Finance Bank, an official statement said.

Also Read | CBI conducts searches in Rs 661 crore IDFC First Bank-AU Finance Bank fraud case

“During investigation evidences have surfaced suggesting that the public servants had colluded with bank officials and had facilitated in opening of accounts, transfer of funds and subsequent diversion thereof,” the statement said.

KPMG’s forensic review

In an exchange filing released in the post-market hours of Friday, IDFC First Bank said that KPMG’s review reaffirmed that the incident arose from collusion involving certain employees or former staff at the branch, some state government employees along with certain third parties. It reiterated that the net principal amount of Rs 646 crore was reported as part of the alleged fraud case.

Also Read | IDFC First Bank fraud was isolated case involving collusion, says KPMG

“The Bank paid the aforesaid amount and applicable interest to the concerned departments and has recognised the same in the books of accounts in Q4 FY26. The Bank is a victim of this financial fraud and is working with investigative authorities,” IDFC First Bank said.

Fraud at IDFC First Bank’s Chandigarh branch

IDFC First Bank had announced that it has discovered an incident of alleged fraud by some employees at one of its Chandigarh branches in February, involving accounts related to the Haryana government. The lender had received a request from one of the departments of the Haryana government to close its account and transfer funds to another bank. While reviewing the request, it found some discrepancies in the amount mentioned against the balance in the account. This led to a massive 16% crash in the private lender’s share price, to record its worst single-day plunge since March 2020.

IDFC First Bank share price

IDFC First Bank shares fell nearly 1% to trade at Rs 71.64 apiece on Monday. The stock is down 16% in 2026 so far. The shares of the company have however gained over 1% in the past one week. The company currently has a market capitalisation of nearly Rs 62,000 crore.

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