HSBC employee held for siphoning Rs1.3 crore in Bangalore

A 29-year-old former associate vice-president of HSBC Bank’s Jayanagar branch and his father have been arrested for misappropriating Rs1.33 crore from six customers.

The accused, KV Kiran Kumar and his father Vijay Kumar, 56, are residents of APC Layout in Vidyaranyapur. The police said Kiran was in charge of insurance and mutual funds.

He misappropriated `1.33 crore by transferring money belonging to six customers to bank accounts belonging to his father and a friend, B Prathap. He did this from 2009 to August 2011.

One of the customers approached the bank when his mutual fund matured. Bank officials realised that Kiran had misappropriated the money. The bank then conducted an inquiry, which revealed that Kiran had siphoned six customers’ money. Kiran was then sacked and a case was registered against him. The bank repaid the money to the aggrieved customers.

The police had registered a case of misappropriation against Kiran. After investigation, Kiran’s father Vijay was arrested. Prathap is still absconding.