IDFC First Bank shares tumbled sharply on Monday after the lender disclosed a ₹590 crore fraud, triggering heavy selling and multiple block deals. Shares fell as much as 20% in early trade before trimming losses to around 16%, marking the steepest single-day decline since March 2020.
The Mumbai-based private lender informed exchanges about the fraud on Sunday. Consequently, investor sentiment weakened at the opening bell. Meanwhile, trading volumes surged significantly within minutes of market open.
As many as 3.17 crore shares changed hands in a block deal during early trading. The transaction represented nearly 0.4% of the bank’s total outstanding equity. Additionally, the total block deal value stood at approximately ₹236 crore, reflecting strong institutional activity.
Although IDFC First Bank shares attempted a partial recovery from intraday lows, selling pressure persisted. Market participants closely tracked price movements amid concerns over asset quality and governance. Furthermore, analysts noted that fraud disclosures often trigger short-term volatility.
However, some experts believe that IDFC First Bank shares could stabilise if management clarifies recovery prospects and strengthens internal controls. Therefore, investors will monitor upcoming statements and regulatory disclosures carefully.
The sharp correction also impacted overall banking sentiment. Meanwhile, broader indices remained relatively steady, indicating stock-specific pressure rather than systemic weakness.
Going forward, traders expect IDFC First Bank shares to remain volatile. Consequently, market participants will watch liquidity trends, institutional flows and management commentary for direction.
The recent fall highlights how corporate disclosures can rapidly reshape stock trajectories. As a result, shares now face a crucial test of investor confidence in the coming sessions.
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