Canara Bank Manager Allegedly Defrauds Customers, Escapes with ₹3 Crore

Bengaluru: Trust in banks is often implicit, especially in public sector banks, where customers deposit their hard-earned money with full faith. But what happens when that trust is betrayed from within? A shocking case has emerged from Malleswaram, Bengaluru, where a senior Canara Bank manager allegedly swindled customers of over ₹3 crore.

The Incident
According to reports by Asianet, the incident took place at the Malleswaram branch of Canara Bank. The manager, identified as Raghu, reportedly took loans in the names of 21 customers and then absconded with the funds. This brazen act has shaken customer confidence and raised serious questions about the accountability within public sector banks.

How the Fraud Happened
Police sources revealed that Raghu cunningly gained the trust of his customers by presenting himself as financially and personally distressed. Claiming to face severe family issues, he asked customers to help him by applying for loans in their names. To make the request appear legitimate, he falsely stated that he possessed gold, which he intended to pledge to secure the loans, but technical difficulties prevented him from applying under his own name.

Trusting his position as a senior bank officer, customers signed the loan documents. Raghu then misused his authority to get the loans approved without pledging any collateral and absconded with the money. He reportedly reassured customers repeatedly, saying, “I am facing severe family problems, please help me by taking loans in my name. I have gold and will pledge it, but due to technical issues at the bank, I cannot take the loan myself.”

Discovery and Aftermath
The fraud came to light when loan repayments stopped and discrepancies were noticed during an internal audit. As the investigation intensified and the risk of apprehension grew, Raghu reportedly fled, leaving multiple customers in financial distress.

Authorities Take Action
Canara Bank management filed a formal complaint at Malleswaram Police Station. Police have launched a search operation to apprehend the fugitive manager and recover the misappropriated funds. The incident has sparked public debate over accountability in banks, raising concerns about customer trust when those responsible for safeguarding deposits misuse their authority.