IDFC First Bank shares crash 20% after reporting a fraud— Should you buy, sell, or hold the banking stock?

Key Highlights

• IDFC First Bank shares fell by 20% to an intraday low of ₹66.85 on February 23.
• The fraud amount of ₹590 crore represents about 22% of the bank's projected net profit for FY26.
• The irregularities were discovered during a closure request from a Haryana government department.
• The bank has informed the RBI and filed complaints with police and other authorities.
• The Haryana government has de-empanelled IDFC First Bank following the fraud disclosure.