As per The Moneycontrol report, on February 23, 2026, the managing director and chief executive officer of IDFC First Bank addressed the unauthorised transaction that surfaced at the Chandigarh branch, describing it as an isolated incident and the first major operational setback in a decade.
The unauthorised transaction involved Haryana government accounts and some bank employees, amounting to almost 1/4 of the bank’s annual net profit.
The bank disclosed the matter to the exchanges on February 21, 2026, and has engaged KPMG to conduct an independent forensic audit. The CEO stated that the audit will identify the root cause and guide corrective actions.
The CEO affirmed that board members, including long‑term investors such as Warburg Pincus and ADIA, are aware of the facts and continue to support the bank.
He highlighted that the bank’s net interest margin is improving and credit costs are expected to decline in the current quarter, suggesting the institution can absorb the loss.
Since the merger, deposits have risen from ₹38,000 crore to ₹2.8 lakh crore over 7 years. The bank reports a return on equity in the range of 15 to 16%, driven by unit economics and core profit growth.
The CEO described the incident as the first operational issue in ten years and indicated that necessary process improvements will be implemented.
Read More: IDFC First Bank Share Price in Focus After ₹590 Crore Fraud at Chandigarh Branch!
As of February 23, 2026, at 10:16 AM, IDFC First Bank share price on NSE was trading at ₹69.45 down by 16.84% from the previous closing price.
The IDFC First Bank leadership has acknowledged the ₹590 crore fraud, engaged a forensic auditor, and reassured stakeholders of ongoing governance strength. Corrective measures are being planned to prevent recurrence while the bank’s broader financial metrics remain stable.
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Published on: Feb 23, 2026, 11:18 AM IST
Team Angel One
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