IDFC First Bank shares fell almost 10% on Monday, February 23 and continued to lose as the selling pressure continued to push the shares. The shares fell to 20% of its lower circuit limit in the BSE at 66.85, down by its previous close.

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The fall came after the regulatory filing, which made the stock exchanges aware that the bank had found inconsistencies in some of the accounts related to the Haryana government and that they were being kept at its Chandigarh branch. The bank said the total figure of the accounts that are subject to reconciliation is about ₹590 crore.

The lender said that the ultimate effect would be determined by additional validation of claims, recoveries, marking liens of the beneficiary accounts in other banks, and liabilities of the entities involved, and the process of legal recovery.

Fraud Linked To Haryana Government Accounts

According to the bank’s filing, the issue surfaced after it received a request from a department of the Government of Haryana seeking closure of its account and transfer of funds to another bank. During the process, discrepancies were noticed between the requested transfer amount and the account balance, prompting a review.

The bank said that, on a preliminary basis, unauthorised and fraudulent activities appear to have been carried out by certain employees at the Chandigarh branch in a specific set of Haryana government accounts, potentially involving other individuals or entities. Similar discrepancies were observed in other related accounts from February 18 onwards.

Haryana Government De-Empanels Two Banks

Following the disclosure, the Haryana government de-empanelled IDFC First Bank and AU Small Finance Bank from handling government business with immediate effect until further orders.

In a circular issued by the Finance Department, the state government directed that no funds be parked, deposited, invested, or transacted through the two banks. The circular also cited compliance lapses related to fixed deposit instructions and directed departments to complete reconciliations by March 31, 2026, and submit a certified compliance report by April 4, 2026.

Stock Performance Trend

IDFC First Bank shares had declined 10% over the past month and 4% over three months. However, the stock had gained 24% over the past year and 8% in the last six months.

The scrip remains over 13% below its 52-week high of ₹87 touched in January 2026, while its 52-week low stands at ₹52.50, recorded in April last year.