Shares of IDFC First Bank, AU Small Finance Bank crash up to 15% after de-empanelment by Haryana govt

IDFC First Bank

• IDFC First, AU Small Finance Bank shares drop amid fraud probe
• IDFC First Bank discovers Rs 590 crore fraud in Haryana accounts
• AU Small Finance Bank's Haryana govt deposits dropped after probe

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Shares of IDFC First Bank and AU Small Finance Bank crashed 15 percent and 7 percent to trade at Rs 70.98 and Rs 957.35 respectively, after both banks came under the scanner of the Haryana government, following the uncovering of a Rs 590 crore fraud in Haryana government-linked accounts.

The broader benchmark Nifty50 index was up 0.7 percent, while the Nifty Bank index rose 0.3 percent.

IDFC First Bank revealed over the weekend that it has identified a fraud of about Rs 590 crore involving certain Haryana government-linked accounts operated through a branch in Chandigarh. The bank however pointed out that the incident is isolated to one-specific group of government-linked accounts, and does not extend to other account holders.

The lender had said an investigation has been initiated and has placed four officials under suspension till the investigation is over. Furthermore, the bank has placed the matter before the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds.

In an exclusive interview to Moneycontrol on February 23, IDFC First Bank CEO  V Vaidyanathan said that the bank will learn from the incident and make necessary changes, after the investigation is complete.

AU Small Finance Bank also said that it has initiated an internal review after the government had sought clarification regarding some suspicious transactions relating to one specific account by the finance department of the Government of Haryana and a customer account.

The de-empanelment has had a sizable impact on the AU Small Finance bank government’s deposits. As of February 17, 2026, the bank held approximately Rs 735 crores in deposits from the Haryana government. Following the de-empanelment, this amount decreased to approximately Rs 538 crores as of February 21, 2026.