BofA downgrades IDFC First Bank to 'neutral' after suspected $65 mln fraud

IDFC First Bank

26/02/2026 04:52

** BofA downgrades India's IDFC First Bank IDFB.NS to "neutral" from "buy"

** Brokerage says suspected fraud could affect current and savings accounts (CASA) growth as customers might pull out deposits and other governments could de-empanel the bank

** Also cites potential one-time impact of 5.90 billion rupees ($64.9 million) in its earnings

** Cuts FY27/28 loan growth estimates by 1-2%, deposit growth estimates by up to 3%, price objective to 75 rupees from 95 rupees

** Adds, likely pressure on net interest margin on higher funding cost from CASA disruption and increasing competition in deposits market

** Avg rating of 20 analysts on IDFB at "hold"; median PT is 80 rupees - data compiled by LSEG

** YTD, stock down 16.8%

($1 = 90.8650 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))