IDFC First Bank has officially settled a high-profile financial discrepancy by transferring **₹583 crore** to the Haryana government. This payment covers 100% of the principal and interest claimed by the state after a fraud incident was uncovered at a Chandigarh branch. The bank took this proactive step on **February 24, 2026**, opting for an immediate resolution rather than waiting for the conclusion of ongoing forensic and police investigations. Haryana Chief Minister Nayab Singh Saini confirmed that approximately **₹556 crore** was credited back to government accounts within 24 hours of the resolution process. The incident involved unauthorized transactions totaling nearly **₹590 crore**. Preliminary findings point to a "traditional brand fraud" where a small group of branch employees allegedly colluded with external parties to manipulate government-linked accounts. The bank has already suspended four officials and appointed KPMG to conduct an independent forensic audit. Market reaction to the disclosure was sharp. The bank's stock faced significant pressure, dropping over **16%** in a single session earlier this week before stabilizing. On **February 24, 2026**, the share price closed at **₹70.97** on the BSE, reflecting a minor recovery of **1.33%** following the settlement news. Despite this one-time governance shock, the bank’s underlying financials remain robust. For the third quarter of FY26, IDFC First Bank reported a net profit of **₹503 crore**, a **48%** increase year-on-year. Total customer deposits grew **24%** to reach **₹2.82 lakh crore**, while the CASA ratio remains strong at **51.6%**. The bank maintains a healthy capital adequacy ratio of **16.22%**, providing a substantial buffer to absorb the financial impact of the settlement. While the fraud may hit short-term earnings, management expects a return to a strong profit trajectory from FY27 onwards. The Reserve Bank of India has clarified that the incident is localized and does not pose a systemic risk to the banking sector. The bank continues to work closely with law enforcement and other financial institutions to freeze suspicious beneficiary accounts and recover the diverted funds.