IDFC FIRST Bank Stock Slips Nearly 1% As CBI Conducts Searches In Chandigarh Fraud Case

IDFC FIRST Bank shares declined nearly 1% in morning trade on Monday after the Central Bureau of Investigation (CBI) conducted searches at six locations linked to an ongoing probe into an alleged ₹646 crore fraud case involving government funds.

However, as the day progressed, there was a marginal recovery. At 2:59 PM, IDFC FIRST Bank shares were trading at ₹71.70 a piece, down 0.90%, on the National Stock Exchange (NSE).

Gains Over The Past Week

Despite the decline, the stock has gained more than 1% over the past week. However, it remains down around 16% so far in 2026. According to an official statement, the CBI searches were conducted at premises linked to senior Haryana-cadre public servants as well as Noida-based Vipam Consultancy Pvt Ltd and its director.

The investigation relates to the alleged siphoning of government funds from departments of the Haryana government and the Chandigarh administration. The agency said the probe concerns funds parked with IDFC FIRST Bank and AU Finance Bank.

KPMG Review Submitted

Separately, IDFC FIRST Bank informed stock exchanges on Friday after market hours that it had received the forensic review report prepared by KPMG. The bank said the review reaffirmed that the incident arose from collusion involving certain employees or former employees of the branch, some state government employees and certain third parties.

Also Read - Three Major Mutual Funds Cap Gold ETF Investments As Government Targets Import Bill

The lender reiterated that the net principal amount involved in the alleged fraud was ₹646 crore. According to the bank, it has already paid the concerned government departments the principal amount along with applicable interest. While the bank has already accounted for the financial impact in its Q4 FY26 books, the investigation remains active.

Source:

The Economic Times