As of late February 2026, IDFC First Bank (NSEI: IDFCFIRSTB) shares are experiencing high volatility, with a reported sharp decline following the disclosure of a significant internal fraud. 

Here is a detailed text analysis of the situation:

Recent Developments: The Fraud Case (Feb 2026)

• The Issue: IDFC First Bank reported a fraud amounting to approximately ₹590 crore at its Chandigarh branch, involving specific employees and Haryana state government accounts.
• Impact on Stock: Following the news, shares of IDFC First Bank fell nearly 19% on February 23, 2026, dropping to around ₹68–₹69, indicating a massive negative reaction from investors.
• Company Actions: The bank has suspended four officials, initiated an internal investigation, and is appointing an independent agency for a forensic audit. They are also taking steps to recover funds by placing liens on beneficiary accounts.

• Operational & Financial Performance (Prior to Fraud Disclosure)

  Before this event, the bank was showcasing a strong growth trajectory: 

• Q3 FY26 Results: The bank had reported a 48% year-on-year increase in net profit, reaching ₹503 crore for the quarter ending December 2025.
• Asset Quality: The bank had been consistently reducing its Gross and Net Non-Performing Assets (NPAs), which stood at 1.87% and 0.53% respectively prior to the fraud news.
• Deposits & Growth: Retail deposits and CASA (Current Account Savings Account) ratios were showing strong growth, with total deposits up 24% year-on-year in Q3 FY26.

• Technical and Market Sentiment Analysis

• Trend Reversal: The stock was in a long-term uptrend, but the sudden, high-volume crash has shifted sentiment from positive to cautious or bearish in the short term, forcing a potential trend reversal.
• Support/Resistance: The stock was trading near its 52-week high (around ₹87) before the crash. The break below crucial support levels suggests a need for re-evaluation, with some analysts noting a "red alert" on the stock.
• Institutional Activity: Prior to the incident, FIIs (Foreign Institutional Investors) had increased their holdings in the December 2025 quarter, indicating initial confidence.

• Outlook

  The short-term focus remains on the investigation, the extent of actual financial loss, and the recovery process. While the bank's core operational performance was robust, the fraud has introduced significant risk, likely leading to a period of consolidation or further downside until the situation stabilizes.