Updated 24 February 2026 at 11:31 IST
IDFC First Bank Up 1.8% In Trade After ₹590 Crore Fraud-Triggered 20% Plunge
IDFC First Bank shares rose nearly 2% today, trading around ₹70–₹71, after a sharp 20% plunge triggered by the disclosure of a ₹590 crore suspected fraud. The sell-off wiped out an estimated ₹15,000–₹18,000 crore in market capitalisation. While today’s move signals some bargain buying, the stock remains significantly below recent highs as investors await clarity from forensic and regulatory reviews.
Shares of IDFC First Bank staged a mild recovery in trade today, rising 1.5–2% intraday after suffering a steep, nearly 20% single-session decline yesterday following the disclosure of a ₹590 crore suspected fraud at its Chandigarh branch.
The stock, which had slipped toward the ₹68–₹69 range during the sell-off, rebounded to trade near ₹70–₹71 levels in morning deals. Despite the uptick, the counter remains sharply lower compared to pre-disclosure levels.
Billions Wiped Out
The 20% crash in the previous session erased an estimated ₹15,000–₹18,000 crore in market capitalisation, reflecting the scale of investor reaction. At its recent highs above ₹85, the bank’s market value was significantly higher. The correction pushed the stock to multi-month lows before today’s marginal recovery.
Institutional shareholders also saw sharp notional losses:
- The Government of India, which holds roughly 7–8% stake, saw the value of its holding decline materially.
- Life Insurance Corporation of India, with an estimated 2–3% stake, also witnessed erosion in portfolio value during the sell-off.
Trading volumes during the crash were significantly higher than the 30-day average, indicating substantial institutional and retail participation. Even today, volumes remain elevated compared to typical sessions, suggesting that investors are actively repositioning. The stock’s weekly decline now stands at nearly 20%, while on a month-to-date basis, it remains in deep negative territory, despite today’s gains.
Valuation Reset After Sharp Correction
At current levels near ₹70, the stock is trading meaningfully below recent highs. The sharp correction has compressed short-term valuation multiples, prompting some bargain buying.
However, sentiment remains fragile as investors await:
- Findings from the forensic audit
- Regulatory observations
- Clarity on recoveries and internal control measures
The ₹590 crore amount represents a small fraction of the bank’s overall loan book, but the market reaction reflects concerns around governance, internal controls, and potential reputational impact.
Sustained recovery in the stock will likely depend on:
- Transparency in disclosures
- Speed of recovery proceedings
- Confirmation that the issue is contained
Published By : Shourya Jha
Published On: 24 February 2026 at 11:31 IST