SHG Fraud reported in Punjab National Bank in Odisha, Branch Manager Suspended
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A serious financial irregularity has been reported in the Korukonda area of Odisha’s Malkangiri district, where the Branch Manager of Punjab National Bank (PNB) has been accused of misappropriating lakhs of rupees meant for women-led Self Help Groups (SHGs).
Several SHG members have filed complaint against Mohan Kumar, the former branch manager. They said that the branch manager diverted loan funds that were sanctioned in the names of different SHGs. Some of the SHGs that have filed complaints include Ma Kali SHG, Jai Guru SHG, and Radharani SHG.
These groups had applied for loan of Rs.3 lakhs and were granted loans of up to ₹3 lakh. However, members claim they never received their loan passbooks and later discovered that nearly ₹6 lakh had been withdrawn in their names, while they had only received ₹3 lakh.
The alleged scam came to light when SHG members enquired about outstanding balances. They had taken loan of Rs. 3 lakhs but the debit balance showed more than Rs. 3 lakhs. Afterwards, they came to know that loan of Rs. 6 lakhs was sanctioned in their name.
One member said, “We had taken a loan of ₹3 lakh, and we even repaid it. But we were told there is another ₹3 lakh still pending. We were never issued the loan book. This has put us in serious trouble.”
In protest, around 20–25 SHG groups gathered outside the PNB branch, locked the bank’s main gate, and demanded accountability. The protest continued for hours, eventually prompting intervention by higher bank officials. The officials assured the protesting members that a full investigation would be conducted and corrective action would follow.
A similar incident of locking the main gate of bank was reported a few days ago in UP Gramin Bank. Women locked the main gate of UP Gramin Bank in Bulandshahr citing delay in their work. The Regional Manager had to visit the branch and control the situation.
Following initial findings, PNB has suspended the accused manager, Mohan Kumar. A new manager has taken over the branch and assured the affected SHGs of complete cooperation and timely resolution of the issue.
Rabi Kiswar, the current bank manager, stated, “We have received the complaint. The matter is under investigation. The loan records are not matching.”
The incident has sparked concern over financial transparency and the protection of vulnerable community groups, especially women-led SHGs that rely on institutional support for their livelihood initiatives. The investigation is ongoing and more details will be released soon.
