IDFC FIRST Bank reported a sequential slowdown in deposit growth for the March 2026 quarter, even as the broader banking system posted an acceleration, according to livemint.com. The deceleration followed the ₹590 crore Chandigarh fraud disclosed in February, which the lender said has dented depositor confidence.
The fraud involved forged documents submitted to a single branch, prompting the bank to book a one-time loss and launch a forensic audit. While management told analysts on 18 May that no systemic lapses were found, customer additions in savings accounts fell sharply in March and early April, reversing the double-digit growth rates recorded in the December quarter, livemint.com reported.
The episode places IDFC FIRST among mid-sized banks grappling with trust deficits after isolated frauds. Yes Bank saw deposit outflows exceed ₹18,000 crore in the quarter following its 2020 governance crisis, while RBL Bank lost roughly ₹6,500 crore in deposits after a 2021 RBI action. Analysts cited by livemint.com estimate that IDFC FIRST could forgo ₹4,000-5,000 crore in incremental deposits in the June quarter unless confidence is restored quickly.
Chief executive V. Vaidyanathan told investors the bank will run a nationwide outreach campaign through June, offer an additional 25 basis points on select tenures, and publish weekly deposit tallies to demonstrate stability. The next public update is scheduled for 15 July, when first-quarter numbers are due; watchers will focus on whether the lender can regain the ₹10,000 crore quarterly deposit run-rate it maintained before the fraud.