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Bengaluru Banking Scandal: Senior Manager Missing After Alleged Rs 3.11 Crore Scam Involving 41 Fake Gold Loans
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According to the police, Raghu allegedly sanctioned gold loans in the names of more than 41 customers without pledging any gold ornaments
The alleged fraud came to light during bank’s routine quarterly audit and revaluation of gold loans, conducted as per regulatory guidelines (Image: Representational)
A senior manager at Canara Bank’s Malleshwaram branch in Bengaluru has gone missing after allegedly orchestrating a large-scale fraud involving gold loans worth Rs 3.11 crore. The case has sent shockwaves through the local banking community, raising serious concerns about internal controls and customer trust within public sector banks.
The accused, identified as N. Raghu, was serving as Senior Manager at the Canara Bank branch located on 15th Cross, Malleshwaram, since July 8, 2024. According to the police, Raghu allegedly sanctioned gold loans in the names of more than 41 customers without pledging any gold ornaments. An FIR has been registered at the Malleshwaram Police Station, and a special police team has been formed to trace him.
How the Alleged Fraud Was Carried Out?
Police officials said Raghu used his position of authority to gain the confidence of customers. He allegedly told them that he was facing financial difficulties at home and requested permission to take loans in their names, assuring them that he would pledge his own gold jewellery and repay the amount himself. Trusting the senior manager, several customers reportedly handed over their bank details, Aadhaar cards, signatures and OTPs.
Investigators said Raghu used these details to sanction gold loans by issuing cheques and processing approvals through the bank’s internal systems. As he was entrusted with the responsibility of approving gold loans, the transactions initially went unnoticed.
Audit Uncovers Serious Irregularities
The alleged fraud came to light during Canara Bank’s routine quarterly audit and revaluation of gold loans, conducted as per regulatory guidelines. During the audit, officers found that 41 gold loan accounts were fictitious in nature. Further verification revealed that no gold ornaments had been deposited against these loans.
A deeper examination of the Core Banking System (CBS) records and physical loan applications showed that Raghu had sanctioned gold loans between October 4 and December 9 without receiving any jewellery. When confronted by senior bank officials, Raghu reportedly admitted to irregularities. Soon after this internal inquiry, he allegedly disappeared without informing the bank or his colleagues, the FIR stated.
Following the complaint filed by bank officials, Malleshwaram police registered a case and launched a search operation to trace the missing manager. A special team has been formed, and further investigation is ongoing.
December 31, 2025, 17:52 IST
How the Alleged Fraud Was Carried Out?
Police officials said Raghu used his position of authority to gain the confidence of customers. He allegedly told them that he was facing financial difficulties at home and requested permission to take loans in their names, assuring them that he would pledge his own gold jewellery and repay the amount himself. Trusting the senior manager, several customers reportedly handed over their bank details, Aadhaar cards, signatures and OTPs.
Investigators said Raghu used these details to sanction gold loans by issuing cheques and processing approvals through the bank’s internal systems. As he was entrusted with the responsibility of approving gold loans, the transactions initially went unnoticed.
Audit Uncovers Serious Irregularities
The alleged fraud came to light during Canara Bank’s routine quarterly audit and revaluation of gold loans, conducted as per regulatory guidelines. During the audit, officers found that 41 gold loan accounts were fictitious in nature. Further verification revealed that no gold ornaments had been deposited against these loans.
A deeper examination of the Core Banking System (CBS) records and physical loan applications showed that Raghu had sanctioned gold loans between October 4 and December 9 without receiving any jewellery. When confronted by senior bank officials, Raghu reportedly admitted to irregularities. Soon after this internal inquiry, he allegedly disappeared without informing the bank or his colleagues, the FIR stated.
Following the complaint filed by bank officials, Malleshwaram police registered a case and launched a search operation to trace the missing manager. A special team has been formed, and further investigation is ongoing.
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