IDFC First Bank Rout Wipes Out ₹14,000+ Cr in a Day; Institutional Portfolios Take a Hit
Republic World • • business
Key Points:
- IDFC First Bank shares plunged 20% to ₹66.85 after revealing a ₹590-crore fraud linked to accounts at its Chandigarh branch, wiping out over ₹14,000 crore in market capitalization in one day and triggering investor concerns over governance.
- The steep stock decline disproportionately impacted institutional investors, with the Government of India losing about ₹1,100 crore and LIC seeing a ₹340 crore erosion in their holdings; retail investors also faced significant losses estimated at over ₹4,000 crore.
- The bank has suspended four employees, launched a forensic audit, filed complaints with law enforcement, and taken steps to recover funds, while brokerages estimate the fraud could reduce FY26 profits by 20-28%, though capital buffers remain strong.
