Bank of America Downgrades IDFC First Bank Target Price Amid Haryana Fraud Impact

Bank of America Securities downgraded IDFC First Bank's rating to 'Neutral' from 'Buy' and lowered its 12-month target price to Rs 75 from Rs 95, citing near-term challenges after a Rs 590 crore fraud involving Haryana government accounts. The bank faced about Rs 200 crore in deposit outflows and was de-empanelled by the Haryana government. BofA cut EPS estimates by 13-14%, trimmed loan and deposit growth forecasts, and highlighted risks to CASA growth and funding costs, while remaining constructive on the bank's medium-term prospects.