The Stunner, How An ICICI Bank Branch Manager Milked Money Off Depositors For Crores For Years To Meet Targets

They say one should check one’s bank statements, and this case proves that – a branch manager of an ICICI Bank branch, along with his associates, successfully met their business performance objectives over several years by unlawfully withdrawing funds from the accounts of unsuspecting customers.

They utilized this money to falsely depict increased activity, such as opening new FDs, current, and savings accounts; however, their scheme was uncovered, leading to blackmail against the bank officials.

In a desperate attempt to conceal their wrongdoing, they escalated their actions, siphoning more money from customer accounts to pay off an individual in Udaipur demanding silence.

The Knockout
Rajasthan Police authorities have verified that approximately Rs 2.5 crore has been disbursed as hush money to a Udaipur-based individual blackmailing the ICICI Bank branch manager.

Amit Kumar, Superintendent of Police (SP) in Pratapgarh, Rajasthan, stated that initial investigations indicate the branch manager and his cohorts engaged in this embezzlement due to the pressure to meet business targets.

These individuals operated by generating overdrafts against FDs, utilizing the funds to initiate new current, savings, and FD accounts.

In banking terminology, the method employed is known as ‘Entry and Reverse Entry’. Following this procedure, newly established current, savings, and FD accounts would be terminated after a brief period, and the funds would be redirected back to the original bank accounts. This operation has persisted for an extended duration.

Regarding the specific incident, an ICICI Bank spokesperson addressed the matter exclusively, stating, “We wish to assure our genuine customers that there will be no financial repercussions. Moreover, we maintain a zero-tolerance stance towards fraudulent activities. Consequently, the employee suspected of involvement has been suspended pending further inquiry. Additionally, we have lodged a formal complaint with the authorities and are fully cooperating with their investigation.”

While the press release from the Rajasthan Police cites the embezzled amount as Rs 2.5 crore, ICICI Bank officials claim it to be Rs 2 crore.

Was there any monetary loss resulting from the scam at the ICICI Bank Pratapgarh branch?

Superintendent Kumar explains that a Special Investigation Team (SIT) was established on February 7, 2024, under the leadership of ASP Bhagchand Meena. This team comprised cyber and financial forensic experts.

The SIT conducted a comprehensive interrogation of the accused branch manager, scrutinizing the unauthorized activities and financial misconduct. They engaged with affected account holders and meticulously examined their bank records to ascertain the truth.

Superintendent Kumar confirms that the incident involved financial fraud leading to monetary losses. However, authorities are still trying to determine the specific bank account(s) from which the funds were withdrawn.

The accused branch manager had been orchestrating this scheme for an extended period, with no proper documentation maintained, while branch employees executed transactions without awareness of the ongoing scam.

The police also provided information regarding the assets and funds associated with the suspected perpetrators of the alleged scam that they have confiscated.

Superintendent Kumar revealed that they have frozen 62 bank accounts connected to the scam, collectively holding a balance of Rs 62,71,490. Additionally, they have seized Rs 46 lakh in cash.

Also, they confiscated gold that was pledged as collateral for a gold loan obtained by the Udaipur-based individual who blackmailed the branch manager.

According to law enforcement, the Udaipur-based individual who blackmailed the bank branch manager is implicated in 19 cases involving murder, attempted murder, and extortion, among other offences; why the name has been withheld is intriguing.

The police have unearthed a paper trail indicating that the aforementioned Udaipur-based individual utilised Rs 45 lakh siphoned from the bank to partially finance the acquisition of a farmhouse valued at Rs 3 crore.

The police have seized this farmhouse after finding evidence linking it to funds from the bank.

Why did the scam come to light only now, despite its years-long operation?

The revelation of the scam occurred when an employee noticed a discrepancy of about Rs 70 lakh in her friend’s bank account.

This friend was aware of the ongoing scam and had been informed that Rs 70 lakh would be withdrawn from his account, to be returned after 3 to 4 days. (Highly suspicious)

However, the money was never restored to the account, raising suspicions for the bank employee, as explained by Superintendent Kumar.

The said employee subsequently confronted the branch manager but did not receive a satisfactory explanation; as a result, she sought the assistance of the police, triggering a series of revelations that exposed the scam.

Upon learning about the scam, ICICI Bank took immediate action.

Manoj Bhowrani, the regional head of ICICI Bank in Banswara, sent a letter on February 6, 2024, to the Rajasthan police department, notifying them about the fraudulent activity conducted by the bank’s employee.

Bhowrani’s letter also outlined the modus operandi of the scam.

An extract of the letter submitted to Rajasthan Police by Manoj Bhowrani read,

“I want to inform you through this letter that this morning account holders of ICICI Bank Dhariyawad branch, came to the branch and inquired about their fixed deposits, on checking which it was found that there was no balance in those fixed deposits. By making OD against those fixed deposits wrongly and without the knowledge of the customers, the amount has been fraudulently withdrawn from those OD accounts. The mobile numbers of the customers have also been wrongly updated in those OD accounts. The amount embezzled in this entire case is Rs 2,00,00,000/-, there is a possibility of increase in the amount in further investigation. All the customers have also lodged their complaints in the branch Dhariyawad. That is also attached with this letwith this letter. It seems that this whole matter is of fraud with customers. Therefore, Sir, I request you to conduct an impartial investigation into this entire matter and appropriate action should be taken against the culprits.”

The Viewpoint
Bank employees in private banks often face immense pressure to meet exorbitant targets set on a monthly basis, particularly when it comes to selling mutual funds, investments, and insurance policies.

These targets typically involve a predetermined set of clients neatly divided among bank employees, who are expected to achieve specific sales objectives.

As a result, many employees feel compelled to resort to unethical practices, such as selling insurance policies disguised as investments, such as ULIP Plans, just to fulfil their monthly quotas.

This brutal environment forces some employees to compromise their integrity and provide inappropriate financial advice or even deceive their clients in order to meet their targets.

However, for those who choose not to engage in such unethical practices and prioritize their clients’ best interests, the pressure to meet targets can lead to professional challenges and even career setbacks.

In such a system, where employees are essentially forced to choose between compromising their ethics or risking their careers, it raises questions about the accountability of individuals within the broader context of an incentivized sales culture in private banking institutions.

Thus, begging the question how much and for how long?