Banded iron formation (BIF) of the Gorumahisani–Sulaipat–Badampahar (GSB) belt in Singhbhum Craton, India, consists predominantly of magnetite. This BIF is intruded by a magnetite dyke. The magnetite dyke is massive and compact with minor sulphide minerals while the host banded magnetite ore, a component of the BIF, shows thin lamination. The magnetite ore of the dyke is fine to medium grained and exhibits interlocking texture with sharp grain boundaries, which is different from the banded magnetite that is medium to coarse grained and show irregular martitised and goethitised grain boundaries. Relics of Fe–Ca–Mn–Mg‐carbonate and iron silicates (grunerite and cummingtonite) are observed in the banded magnetite. The intrusive magnetite is distinctly different in minor, trace and REE geochemistry from the banded magnetite. The banded magnetite contains higher amounts of Si, Al, Mn, Ca, Mg, Sc, Ga, Nb, Zr, Hf, Co, Rb and Cu. In contrast, the massive magnetite is enriched in Cr, Zn, V, Ni, Sr, Pb, Y, Ta, Cs and U with higher abundance of HREE. In the chondrite normalized plot, the massive magnetite shows a slight positive Eu anomaly while the banded ore does not show any Eu anomaly. Field disposition, morphology, mineralogy and chemistry show that the intrusive magnetite dyke is of igneous origin, while magnetite in BIF formed from a carbonate protolith through the process of sedimentation.