Lucky Baskhars run amok as gold loan defaults dazzle across banks’ portfolios

Visualisation by Sadhana Saxena Via AI

Synopsis
RBI and finance ministry give varying numbers of defaults as the INR1.7 lakh crore gold loan portfolio of banks come under scrutiny. While the narrative of individual rogue bankers is peddled often, there seem to be systemic issues, including a flawed business model based on dubious intermediaries who want a pie of the red-hot yellow metal business.

Last week, cops near Sholavandan in Tamil Nadu’s Madurai district arrested an assistant manager of Bank of Baroda’s Mannadimangalam branch for allegedly stealing gold jewellery weighing over 560 grams. Ganesh, the arrested staffer, was held responsible by the bank after an audit ordered by the bank’s regional manager found 9 packets of jewellery pledged by borrowers missing. What 34-year-old Madhu Jayakumar, who hailed from neighbouring Tiruchy,