New Delhi, Feb. 23 -- AU Small Finance Bank shares plummeted over 6% on Monday, February 23 after the Haryana government decisively removed the bank from its list of empanelled lenders due to serious allegations of fraudulent activities.

In a prompt response, the bank announced that it has initiated an internal review concerning two specific accounts. They firmly stated that both accounts were opened after completing all necessary KYC checks and requisite authorizations, fully complying with the bank's internal policies and processes.

Additionally, IDFC First Bank faced similar repercussions, as the Haryana government de-empanelled it due to fraudulent activities tied to several employees at its Chandigarh branch, involving a staggering...