A ₹590 crore fraud in IDFC First Bank has hit everyone hard. The Indian government, LIC, and even small retail investors have lost thousands of crores.<img>On Monday, IDFC First Bank’s shares dropped 20% in a single day, hitting ₹66.80. This is its lowest level since October 2025. Heavy selling started right after the market opened, wiping out crores from investors’ pockets.<img>Bank employees and some outsiders messed with Haryana government accounts at a specific Chandigarh branch. The bank found a ₹590 crore difference and has suspended four employees. They’ve now hired KPMG for a full forensic audit to investigate the matter.<img>The stock price fall gave a big jolt to major investors. The Government of India (7.75% stake) lost ₹1,113.83 crore in a day. LIC (2.35% stake) lost ₹338.15 crore. Other insurers like HDFC Life and ICICI Prudential lost ₹317 crore and ₹299 crore respectively. Small retail investors (15.06% stake) saw their wealth shrink by ₹2,163 crore.<img>Analysts believe this fraud amount equals 20-22% of the bank’s expected net profit for FY 2026. They estimate it could hit the bank’s total net worth by 1%. This incident might also lead to a closer look at how safe government deposits are in private banks.<img>Market experts say the stock’s mood has flipped from ‘bullish’ (positive) to ‘bearish’ (negative). This means the price could fall even more. For now, analysts have warned that the stock has a technical support level around ₹66-67.
