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Bank of Baroda MD and CEO Debadatta Chand stated that the bank will go slow in the gold loan segment.
The bank is closely monitoring gold price volatility and potential risks in the real economy, particularly related to the agriculture sector. While retail gold loans have seen high percentage growth, the overall absolute exposure in the bank’s book remains relatively small.
Growth in agricultural gold loans is being tightly calibrated using conservative loan-to-value (LTV) ratios and margin adjustments.
Even with a measured approach to gold loans, Bank of Baroda recently raised its overall lending and deposit growth guidance following strong performance in the July–September quarter.
Gold Loan Fraud Cases in Indian Banks
Several cases of gold loan fraud have been reported in Indian banks in recent years. These cases involve fake gold jewellery, loans sanctioned without actual gold deposits, replacement of genuine gold with imitation jewellery and alleged involvement of bank employees and gold valuers. Some major cases reported across different states are discussed below.
1. ₹23 Crore Gold Loan Fraud at ICICI Bank, Nagpur
An alleged gold loan fraud of approximately ₹23 crore was reported at nine ICICI Bank branches in Nagpur, Maharashtra, in April 2026. According to reports, 159 account holders allegedly obtained gold loans by pledging fake gold ornaments. The suspected fraud took place between January 2023 and October 2025. The bank detected irregularities during an internal audit and initiated an investigation into the matter.
2. ₹12.61 Crore Gold Loan Fraud at SBI, Telangana
A gold loan fraud worth approximately ₹12.61 crore was reported at the State Bank of India’s Chennur branch in Mancherial district, Telangana, in September 2025. The investigation revealed alleged irregularities in 402 gold loan accounts. According to police, genuine gold pledged by customers was allegedly removed from the bank and used to obtain loans from other gold lending companies. Investigators also found cases of fictitious gold loans sanctioned without actual gold collateral. Several people, including bank employees, were arrested in connection with the case.
3. ₹10 Crore Gold Loan Fraud at Bank of Baroda, Andhra Pradesh
An alleged gold loan fraud of approximately ₹10 crore was reported at Bank of Baroda’s Jangareddygudem branch in Andhra Pradesh in September 2026. According to the investigation, approximately 6.449 kg of pledged gold was allegedly missing from the bank. The genuine gold was reportedly replaced with imitation jewellery. The case involved 176 gold loan accounts, and police arrested three bank employees in connection with the alleged fraud. A gold appraiser was also named in the investigation.
4. ₹7.3 Crore Gold Loan Fraud at Canara Bank, Maharashtra
A gold loan fraud worth approximately ₹7.3 crore was detected at Canara Bank’s Badnapur branch in Jalna district, Maharashtra, in April 2026. The fraud came to light during a routine inspection and revaluation of gold loan packets. The inspection revealed that 22 packets contained fake jewellery worth approximately ₹3.8 crore. Another 30 packets containing gold worth around ₹3.5 crore were reportedly missing from the bank’s strong room. Police registered a case against bank officials and a gold appraiser. Two people were arrested during the initial investigation.
5. ₹7.08 Crore Gold Loan Fraud at UCO Bank, Bhopal
An alleged gold loan fraud of approximately ₹7.08 crore was reported at UCO Bank’s Lalghati branch in Bhopal, Madhya Pradesh. The case involved 73 gold loan accounts in which loans were allegedly sanctioned using fake gold jewellery and incorrect valuation certificates. According to the investigation, some borrowers, bank employees and gold valuers allegedly worked together to obtain loans against fake or non-existent gold. The case also involved allegations of manipulation of bank records and diversion of loan funds.
6. ₹5.21 Crore Gold Loan Fraud at SBI, Odisha
A gold loan fraud worth approximately ₹5.21 crore was reported at the State Bank of India’s Balichandrapur branch in Odisha in May 2026. The Economic Offences Wing (EOW) arrested two SBI officials in connection with the case. According to investigators, 103 gold loans were allegedly sanctioned against fake or non-existent gold. Out of these, 63 loans were reportedly sanctioned without any gold ornaments being deposited with the bank. The investigation also revealed allegations of forged borrower signatures, missing loan documents and irregularities in gold valuation.
7. ₹4.32 Crore Fake Gold Loan Fraud in Bhopal
An alleged gold loan fraud worth approximately ₹4.32 crore was reported in Kolar, Bhopal, Madhya Pradesh, in January 2024. The case involved 36 gold loan accounts belonging to 10 customers. According to police, fake gold jewellery was allegedly pledged to obtain loans, while some loans were sanctioned without any gold being deposited with the bank. Bank employees, gold valuers and customers were named in the investigation.
8. ₹43.17 Lakh Gold Loan Fraud at PNB, Jabalpur
A gold loan fraud involving approximately ₹43.17 lakh, including interest, was reported at Punjab National Bank’s Sadar branch in Jabalpur, Madhya Pradesh, in June 2026. The alleged fraud was detected during a fresh valuation of gold pledged against loans. According to reports, jewellery deposited by 12 borrowers was found to be fake. Two empanelled gold valuers who had certified the jewellery were also named in the case. Police registered a case against 15 people in connection with the alleged fraud.
9. ₹2.2 Crore Gold Loan Fraud at SBI, Hyderabad
An alleged gold loan fraud worth approximately ₹2.2 crore was reported at SBI’s Ramnagar branch in Hyderabad. According to reports, fictitious gold loans were allegedly sanctioned in the names of relatives, family members and associates without valid gold collateral. A bank employee was accused of misusing his position to facilitate the fraudulent transactions, while another employee was also allegedly involved in processing the loans. The irregularities were detected during an internal investigation, following which a police case was registered.
Common Methods Used in Gold Loan Frauds
The reported cases highlight several methods used to commit gold loan fraud in banks. In some cases, borrowers allegedly pledged fake gold jewellery to obtain loans. In other cases, genuine gold deposited by customers was allegedly removed from bank lockers and replaced with imitation jewellery. There were also cases in which loans were sanctioned without receiving any gold ornaments. Some investigations revealed alleged collusion between bank employees, customers and empanelled gold valuers. Incorrect valuation certificates, forged signatures, fictitious loan accounts and manipulation of bank records were also reported.
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