Rajkot: Indian Bank has approved compensation of Rs 1.32 crore for a Rajkot-based couple whose gold ornaments worth Rs 1.15 crore went missing from the bank’s custody. The jewellery had been pledged against two MSME gold loans at the bank’s Rajkot branch.According to the couple, Sangeeta Shah and Shyam Shah, they had pledged 1,004.1g of 22-karat gold jewellery to avail the loans, which were renewed every year. They alleged that the bank did not inform them about the loss of the pledged gold and continued charging interest on the loan accounts.The issue came to light in Oct 2025 when the couple approached the bank for renewal of the loans and were informed that the pledged gold was missing.The Shahs subsequently approached the Gujarat high court, where their petition is currently pending. Meanwhile, the bank initiated a settlement and on March 11 issued a letter approving compensation of Rs 1.32 crore.After adjusting the outstanding principal amount of the two loan accounts, the net amount payable to the couple comes to Rs 89.36 lakh. The bank has also agreed to reverse all interest, penal interest and other charges debited to the loan accounts after Nov 2025.In its settlement letter, the bank stated that after completion of payment it will close both gold loan accounts, remove their NPA classification, update the accounts as ‘closed’ in its records and ensure appropriate corrections with all credit bureaus.
