IDFC First Bank share price felt strong tremors after the news of fraudulent transaction of Rs 590 crore at its Chandigarh branch. As the stock market opens, its share locked in lower circuit of 10% and latter it extends to 20%. As the news come into fore, the Haryana government de-empaneled the bank from handling state business, citing compliance lapses.
At the end of the Monday’s trading session share price of the IDFC First Bank ended 16% lower. It was its worst fall since March 2020. To mitigate the risk, bank suspended four officials, initiated forensic audits, and filed complaints, while the RBI said the incident poses no systemic risk.
Shares of IDFC First Bank closed at Rs 70.09 apiece on Monday. Earlier during the day, the stock crashed 20% to briefly hit the lower circuit at Rs 66.80 apiece, marking the lowest level since early June last year.
Following this news, the Har Haryana government de-empaneled IDFC First Bank and AU Small Finance Bank from handling government business with immediate effect. Circular issued by the Finance Department of Haryana government said that no government funds will be parked, deposited, invested or transacted through these banks until further orders.
Cases of fraud in different banks
PNB case
The case allegedly involving Rs 13,000-crore in Punjab National Bank (PNB) is one of India’s largest documented banking frauds. Two PNB officials issued fraudulent Letters of Undertaking (LoUs) to overseas firms linked to Nirav Modi and Mehul Choksi without proper collateral, enabling unauthorised credit access. Many such LoUs and LCs eventually became non-performing assets (NPAs).
Bank of Baroda case
In 2015, a foreign exchange fraud allegedly involving Bank of Baroda (BoB) was detected. There was illegal, disguised remittance of around Rs 6,000 crore to Hong Kong from its Ashok Vihar branch in New Delhi. The funds were transferred under the guise of advance payments for imports that never actually took place. CBI and ED investigated the fraud, arrested several individuals, including two bank officials.
ICICI bank case
ICICI bank case allegedly involving its MD and CEO Chanda Kochhar rocked the banking system. The ICICI Bank case related to loans of about Rs 3,250 crore sanctioned between 2009 and 2012 by ICICI Bank to the Videocon Group when Kochhar was the MD & CEO. After Videocon defaulted, allegations arose that its promoter Venugopal Dhoot invested in a company linked to Kochhar’s husband Deepak Kochhar, raising concerns of a possible quid pro quo and conflict of interest.
The matter was investigated by the CBI and ED. Kochhar stepped down in 2018. She was arrested in 2022, and later received relief from the Bombay High Court citing procedural lapses.
IndusInd bank case
In 2025, IndusInd Bank had disclosed that an internal review of its derivative portfolio revealed a potential 2.35 per cent “adverse impact” on its net worth. Weeks after IndusInd Bank disclosed accounting lapses and losses of nearly Rs 2,000 crore in its derivatives portfolio that triggered sharp fall in its shares, the bank’s Managing Director & CEO Sumant Kathpalia resigned.
Citibank case
Citibank India came across a Rs 400-crore scam in 2010-2011 involving a Gurgaon-based relationship manager who duped high-net-worth clients into a bogus investment scheme, leading to arrests and regulatory fines. He was charged with luring high net worth individuals and corporate entities into making investments and then diverting the money to the stock market and causing huge losses to the tune of over Rs 400 crore.
Yes Bank case
The RBI superseded the board of Yes Bank on March 5, 2020, due to a serious deterioration in its financial position. Rana Kapoor, co-founder of Yes Bank, was arrested in 2020 for an alleged fraud involving kickbacks for loans, mainly through a conspiracy with DHFL promoters, resulting in several alleged illicit transactions. The scandal allegedly involved receiving Rs 600 crore in bribes for investing Rs 3,700 crore in DHFL debentures.
