SBI Loan Fraud Accused, Escaped in 2025, Apprehended in Hyderabad

Authorities have apprehended an individual involved in a significant loan fraud scheme linked to the State Bank of India. The arrest took place in Hyderabad, according to an official release from CID Region Officer A. Farheen.

What Happened

The accused, identified as Kavala Venkata Narasimham, was taken into custody by Rajamahendravaram police. He faces charges related to a loan fraud amounting to ₹6.7 crore that occurred across three branches of the State Bank of India in Kovvur mandal, East Godavari district. A local court ordered his placement in Rajamahendravaram Central Prison on judicial remand on Friday.

Background

The fraud involved obtaining various loans, including MUDRA loans, between 2018 and 2020. Mr. Venkata Narasimham allegedly used fake documents and collaborated with employees from SBI branches in Kovvur mandal, including the Main Branch, Prakkilanka, and Kovvur Bazaar branches. The sanctioned loans were primarily under the Agri-Asset Backed Loan and MUDRA loan schemes.

This arrest is also connected to a prior incident where Mr. Venkata Narasimham escaped from the custody of CID-Andhra Pradesh police. This escape occurred in September 2025 while he was being transported back to Rajamahendravaram from New Delhi, leading to a separate case registration at the Vasant Kunj South police station.

Key Facts

• Kavala Venkata Narasimham, an accused in an SBI loan fraud case, was arrested in Hyderabad.
• The fraud involved ₹6.7 crore across three State Bank of India branches in Kovvur mandal, East Godavari district.
• The fraudulent loans were obtained between 2018 and 2020 using fake documents and alleged support from SBI employees.
• Mr. Venkata Narasimham had previously escaped police custody in September 2025 while being moved from New Delhi to Rajamahendravaram.
• A local court ordered him to Rajamahendravaram Central Prison on judicial remand on Friday.