IOB assistant branch manager arrested for ₹3.09-crore gold loan fraud
An assistant branch manager at an Indian Overseas Bank in Chennai was arrested for allegedly replacing 2,179 grams of customer-pledged gold with fake ornaments. The official reportedly used the proceeds from pawning the stolen gold to fund online gaming and personal expenses.
Why it matters
The case underscores risks in banking security and the potential for internal fraud, leading to significant financial loss for bank customers.
A bank official entrusted with safeguarding customers’ gold allegedly turned it into a ₹3.09 crore fraud. The Central Crime Branch has arrested an assistant branch manager of Indian Overseas Bank for allegedly replacing 2,179 grams of pledged gold jewelry with fake ornaments.
The accused, Potnuru Murali Krishna, 34, a native of Visakhapatnam in Andhra Pradesh and a resident of Purasawalkam, was working as the assistant branch manager at the Indian Overseas Bank branch in Ayanavaram.
A case was registered following a complaint filed on August 13 by the branch manager of the bank.
In his complaint, he alleged that the accused had fraudulently removed gold jewelry pledged by around 21 customers and replaced it with imitation ornaments.
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