CSB Bank, Poonawalla Fincorp to auction 12 kg of pledged gold as 228 borrowers in Maharashtra default
CSB Bank and Poonawalla Fincorp will auction about 12.2 kg of gold jewellery pledged by 228 borrowers in Maharashtra who have defaulted on their loans. The two auctions are scheduled within days of each other. Public notices published on Saturday show the borrowers owe the lenders about ₹12.43 crore in total.
The bigger of the two sales is CSB Bank’s. The Thrissur-based private lender will auction gold pledged by 139 borrowers against 200 loan accounts on 2 November at 10.30 am, at its branch premises. Outstanding dues as of 21 October total ₹10.11 crore. The jewellery weighs about 10.03 kg.
Poonawalla Fincorp, a non-banking finance company, will auction jewellery from 89 defaulted loans at 20 of its branches across the state on 28 October. Those borrowers owe ₹2.32 crore against original loans of ₹2.07 crore. The jewellery is 307 pieces weighing about 2.14 kg.
Different borrower profiles
The two notices describe very different borrowers. Poonawalla’s loans are small: the median is about ₹1.53 lakh, and 57 of the 89 loans were for less than ₹2 lakh. The smallest is a ₹27,500 loan in Wardha, now ₹34,884 in dues, backed by 2.5 grams of jewellery.
CSB’s exposures are much bigger. The median outstanding balance is ₹4.26 lakh, and 26 borrowers owe more than ₹10 lakh each. The single largest account is at the bank’s Hinjewadi branch in Pune, with dues of ₹81.16 lakh against 725 grams of gold. The next largest are ₹46.40 lakh at Indiranagar in Nashik and ₹42.32 lakh at Khed in Ratnagiri. The five largest accounts make up 22 per cent of the total due.
At both lenders, dues work out to roughly ₹10,000 per gram of gross weight. Gross weight includes stones and alloy, so the figure is not the value of the gold.
Geography
CSB’s defaults are spread across Pune district, western Maharashtra and the Konkan. Hinjewadi has the highest dues (₹1.32 crore across six borrowers). Next come Kolhapur’s Mahalakshmi branch (₹1.03 crore, nine borrowers), Indiranagar in Nashik (₹99.5 lakh, five) and Kedgaon (₹89.9 lakh, 13). The bank also lists 15 borrowers at Mumbai branches, including Goregaon, Kandivali, Ghatkopar, Malad, Andheri, Borivali, Dahisar and Govandi. Together they owe about ₹1.16 crore.
Poonawalla’s accounts are concentrated in semi-urban and rural centres. Islampur in Sangli district and Tuljapur in Dharashiv district have 11 accounts each. Parbhani has nine, Kolhapur eight, and Akluj and Sangamner seven each.
What the notices say
CSB said the gold is being sold “on account of non-repayment” despite the payment and recall notices it had issued. It may adjourn the sale at its discretion. If the auction fails, the ornaments may go to a public auction or e-auction. The bank will take legal action to recover any shortfall, and for deceased borrowers, the conditions apply to their legal heirs.
Poonawalla said it had given its borrowers 90 days to repay before deciding to “enforce the security”. Borrowers can stop the sale by paying their dues in full before the auction starts. If they settle after the notice was published, they will be charged a proportionate share of the publication and auction costs. Any shortfall stays recoverable from the borrower, and any surplus will be refunded. Bidders must submit PAN and Aadhaar details and can inspect the gold only on the day of the auction. The minimum reserve price will be set “in accordance with applicable regulatory norms”.
The CSB notice appeared a day after the bank reported a net profit of ₹182.72 crore for the September quarter, up 14 per cent from ₹160.33 crore a year earlier.
Regulatory backdrop
The auctions are being held under the Reserve Bank of India’s consolidated directions on lending against gold and silver, which took effect on 1 April 2026. The rules require lenders to give borrowers advance notice before auctioning pledged gold. The reserve price must be at least 90 per cent of the gold’s market value, falling to 85 per cent after two failed auctions. Any surplus must be returned to the borrower within seven days.
Gold traded at ₹1,41,630 per 10 grams on 22 October, according to India Bullion and Jewellers Association data.
Discover more from Insolvency Tracker
Subscribe to get the latest posts sent to your email.
