IDFC First Bank Downgraded by BoFA, Re-rating Delayed Amid Fraud Concerns

CNBC TV18•26-02-2026, 08:12

•BoFA Securities downgraded IDFC First Bank to "neutral" from "outperform" and cut its price target to ₹75 from ₹95.
•The re-rating of IDFC First Bank is expected to be delayed until full clarity emerges on recent issues, leading to a 13% cut in FY27 EPS estimates.
•Shares declined 20% after a ₹590 crore fraud disclosure related to a Haryana Government account, later debunked by the government.
•Despite the bank's clarification that it was an isolated incident, the stock failed to recover meaningfully.
•BoFA anticipates disruption in CASA, impacting deposit growth, cost of funds, loan growth, and higher operating expenditure.

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