Market Brief: IDFC First Bank Recovery and Performance IDFC First Bank shares experienced significant volatility today, February 24, 2026, following critical updates regarding a fraud case involving Haryana government-linked accounts. The stock managed a partial recovery, trading around **70.80** after a sharp **16%** slump in the previous session. Intraday movement saw the scrip hit a low of **68.50** before momentum shifted. High trading activity was recorded with a volume of over **5.79 crore** shares, reflecting a traded value of approximately **405.76 crore**. This liquidity spike came as investors reacted to confirmation of fund recovery. Fraud Recovery and Government Action Haryana Chief Minister Nayab Singh Saini informed the State Assembly today that the government has successfully recovered nearly **556 crore**, including **22 crore** in interest. The recovery was processed within **24 hours**, significantly easing immediate concerns over capital loss. The incident was localized to a single branch in Chandigarh and involved four to five middle-and-lower-rung employees. These individuals allegedly colluded with external parties to process forged physical cheques. The bank has officially clarified that no digital breach occurred and the issue is confined to this specific account cluster. Financial Safeguards and Outlook IDFC First Bank has paid **100%** of the principal and interest, totaling **583 crore**, to the Haryana Government departments. Despite this payout, the bank maintains that it will remain profitable. Management has indicated that provisions will be taken, supported by an employee-fraud insurance cover of up to **35 crore**. To ensure transparency, the bank appointed KPMG to conduct an independent forensic audit, expected to conclude within four to five weeks. Four officials have been suspended, and a police FIR has been filed to pursue criminal action against all involved parties. Sector Context and Indicators The broader banking sector remains robust, with the Nifty Bank index rising **1.64%** recently. While IDFC First Bank faces specific headwinds, its fundamentals as of late 2025 showed a Capital Adequacy Ratio of **16.22%** and a CASA ratio of approximately **50%**. The bank's current market capitalization stands near **60,000 crore**. Investors are now focusing on the forensic audit results and the bank's ability to maintain its **5.76%** Net Interest Margin amidst these localized operational challenges.