Core Insights - Retail investors are increasingly buying underperforming stocks while selling high-performing ones, indicating a mean reversion strategy [2][5][6] - In the December quarter, retail holdings rose in 1,019 NSE-listed companies with an average stock price decline of 8.6%, while holdings fell in 1,092 companies with a 1.6% price increase [1][6] - Retail ownership in Kaynes Technology nearly doubled from 8.75% to 16.56%, despite the stock dropping 43% [2][6] - Retail investors sold significant amounts in stocks like BSE and Reliance Industries, which saw price increases of 29% and 15% respectively [6][7] Retail Investment Trends - Estimated retail buying in Kaynes Technology was Rs 2,421 crore, while Dixon Technologies saw Rs 1,696 crore in retail purchases despite a 26% drop [2][6] - Retail selling included Rs 4,313 crore in BSE and Rs 4,238 crore in Reliance Industries, highlighting a trend of exiting profitable stocks [6][7] - Retail share by value in NSE-listed companies decreased to 7.25% as of December 31, 2025, from 7.45% at the end of September [5][6] Market Performance - Over the past eighteen months, Indian markets have shown modest returns, with large-cap stocks performing better than small and mid-caps, where retail investors are more concentrated [6][7] - Retail holdings in rupee terms stood at Rs 34.14 lakh crore, reflecting a 2.94% increase over the quarter, despite a decrease in share percentage [5][7]

SynopsisAU Small Finance Bank shares dropped over 6% after the Haryana government de-empanelled the lender from government business due to suspected fraudulent activities. The bank stated it initiated an internal review of two accounts, asserting they were duly opened and compliant with policies. This action follows a similar de-empanelment of IDFC First Bank over a Rs 590 crore fraud. ...

Core Viewpoint - IDFC First Bank is facing a significant fraud issue involving Rs 590 crore linked to its Chandigarh branch, with certain employees allegedly involved in fraudulent transactions from accounts associated with the Haryana government [1][9]. Group 1: Fraud Details - The fraudulent transactions amount to Rs 590 crore, and four officials have been suspended pending an internal investigation [1][9]. - The irregularities were discovered when the Haryana government requested the closure of its account and transfer of funds, revealing discrepancies between the bank's records and the amounts reported by government entities [6][9]. - The fraudulent activity is confined to specific government-linked accounts at the Chandigarh branch and does not affect other customers [7][9]. Group 2: Bank's Response - IDFC First Bank plans to take strict disciplinary, civil, and criminal action against the involved employees and external individuals, and has lodged a complaint with police authorities [2][9]. - The bank has sent recall requests to beneficiary banks to lien-mark balances in accounts identified as suspicious and is appointing an independent external agency for a forensic audit [3][9]. Group 3: Market Reaction - Following the revelation of the fraud, shares of IDFC First Bank hit a 15% lower circuit at Rs 71.03 on the BSE, although they closed 0.64% higher at Rs 83.51 on the NSE prior to the announcement [8][9]. - The technical analysis indicates a 14-day Relative Strength Index (RSI) of 50.3, suggesting neutral market conditions [8].

Core Viewpoint - AU Small Finance Bank and IDFC First Bank have been de-empanelled from handling Haryana government business due to alleged fraud, leading to a significant reduction in government deposits with these banks [1][10]. Group 1: De-empanelment Details - The Haryana government issued a notice on 18 February stating that no government funds shall be parked, deposited, invested, or transacted through AU Small Finance Bank and IDFC First Bank [10]. - The de-empanelment was prompted by a fraud investigation involving IDFC First Bank, where four employees are suspected of being involved in a ₹590 crore fraud targeting Haryana government-linked accounts [2][10]. Group 2: Internal Review and Findings - AU Small Finance Bank has initiated an internal review, confirming that the government and customer accounts involved were opened following all applicable KYC checks and internal policies [5][6]. - The internal review found no indication of financial impact or fraudulent activity towards AU Small Finance Bank, with all transactions in the government account being duly authorized and executed [6][7]. Group 3: Financial Impact - As of 17 February, AU Small Finance Bank had total deposits of approximately ₹735 crore from the Haryana government, which decreased to around ₹538 crore by 21 February, representing about 0.4% of the bank's overall deposits as of 31 December [8][10]. - The government account in question was initially credited with ₹25 crore and had about ₹47 crore transferred to a customer account through 14 authorized transactions [7][8]. Group 4: Compliance and Future Actions - AU Small Finance Bank is engaging with the Haryana government to understand the reasons for de-empanelment and is committed to cooperating with authorities [8][10]. - The Haryana government has directed all departments to ensure compliance with fixed deposit terms and to report discrepancies, emphasizing the need for regular audits and reconciliations to maintain financial integrity [10].

IDFC First Bank Ltd disclosed a potential fraud incident, involving unauthorised activities worth ₹590 crore by certain employees at its Chandigarh branch, linked to Haryana Government accounts. The issue surfaced from a Haryana Government department’s account closure request, revealing discrepancies between stated balances and actual funds. Further probes from February 18 showed mismatches in other Haryana entity accounts at the branch. Preliminary review confirms the matter is isolated to specific governm ...

Core Insights - The Reserve Bank of India (RBI) is expected to infuse at least ₹5 lakh crore through liquidity operations in the next fiscal year to address supply-demand imbalances in the bond market [7][2] - Total issuances from the Centre, states, and companies are estimated to be a minimum of ₹40 lakh crore, making liquidity measures crucial for containing borrowing costs [7][1] - The RBI has already bought back nearly half of the central government's borrowings in FY26 through open market operations (OMO), setting a record for OMO purchases [7][1] Government Borrowing Plans - The central government plans to borrow ₹14.77 lakh crore via dated securities in the current fiscal year, with the RBI having already bought back ₹6.88 lakh crore of sovereign bonds from the market [2][7] - Economists predict that the RBI will need to act as a balancing factor in the bond market due to potential bearishness stemming from states' fiscal challenges [2][7] Banking System Liquidity - The banking system liquidity is currently at a daily average surplus of ₹2.66 lakh crore, which is approximately 2.6% of net demand and time liabilities (NDTL) as of February [5][7] - Economists emphasize the need for the RBI to ensure that core liquidity surplus does not fall below 1% of NDTL by March 2027 [6][7]

.The bank's filing comes after the state directed its departments to close accounts with private lenders on Feb 18. The matter was escalated to the bank's board at a hastily convened meeting on Feb 21, after the lender filed a police complaint and notified regulators. It has also informed its statutory auditors and initiated the process of appointing an independent external agency to conduct a forensic audit. In addition, recall requests have been sent to certain beneficiary banks to lien-mark balances in s ...

The government has, with immediate effect and until further orders, removed In a circular dated February 18 addressed to heads of departments, state-run units and banks operating in Haryana, the additional chief secretary of Haryana government authorised administrative secretaries to approve the opening of bank accounts for schemes, projects and programmes only in nationalised banks operating in the state.Any proposal to open an account with a corporate or private sector bank must be submitted to the finan ...

Core Viewpoint - IDFC First Bank reported ₹590 crore in unauthorized transactions linked to Haryana government accounts, stating the incident was isolated to a single branch in Chandigarh and involved fraudulent activities by certain employees in collusion with external parties [1][10]. Group 1: Incident Details - The unauthorized transactions were executed using forged cheques and fraudulent authorization letters, indicating that they were manual transactions conducted at the branch level [5][10]. - The bank has confirmed that the issue is specific to one branch and one client group, asserting that there is no system-level issue and that all other branches are operating normally [7][11]. Group 2: Internal Controls - IDFC First Bank has established necessary internal controls, including a maker-checker-authorizer system for clearing cheques and debit instructions, and has not experienced such incidents in over 10 years of operation [6][11]. - The bank also sends periodic system-generated statements and alerts to registered customer IDs, which were bypassed in this case due to employee collusion with third parties [6][11]. Group 3: Financial Impact and Recovery Efforts - The initial financial impact of the incident is assessed at ₹590 crore, but the final implications will depend on recoveries and validation of claims [8][9]. - The bank is taking steps to trace the flow of funds and will pursue civil and criminal actions against those involved, including marking liens on suspicious accounts held with other banks [9][11].

No government funds will be parked, deposited, invested or transacted through these institutions, it said. "IDFC First Bank and In a regulatory filing made in the early hours, IDFC First Bank said it has disclosed the matter to the banking regulator and also filed a police complaint.Live Events Meanwhile, according to the Haryana government circular, no government funds shall henceforth be parked, deposited, invested, or transacted through these banks. All concerned departments/organisations shall take i ...