Neutral IDFC First Bank; target of Rs 80: Motilal Oswal

Motilal Oswal recommended Neutral rating on IDFC First Bank with a target price of Rs 80 in its research report dated February 23, 2026.

Broker Research

February 24, 2026 / 11:29 IST

Neutral

Motilal Oswal's research report on IDFC First Bank

IDFC First Bank (IDFCB) has reported certain fraudulent transactions in respect to unauthorized withdrawal of deposits amounting to INR5.9b from its branch in Chandigarh, Haryana. The bank mentioned that the fraud is confined to a single branch and pertains to a defined set of Haryana state government accounts. There appears to be a prima facie evidence of employee collusion, and this incident is not a reflection of systemic failure, the bank said. Government deposits (state + Central) account for ~8-10% of total deposits for IDFCB, while Haryana state government’s balance stands at ~0.5% of total deposits. The bank has appointed KPMG as an auditor and the investigations are underway. Basis findings and following the due procedures, the bank will look to make necessary provisions in the coming quarter. We believe that in a worst-case scenario assuming negligible recovery, the provisioning requirement will impact 4QFY26 PBT by 56%.

Outlook

We look forward to get more clarity on these developments and potential recovery that may possibly happen as the authorities investigate the matter. We will review our numbers during the 4Q preview and in the interim, we maintain our Neutral rating on the stock with a revised PT of INR80 (1.3x Sep’27E ABV).

For all recommendations report, click here