Shree Laxmi Co-Op Shuts Five Branches

The Ahmedabad-based Shree Laxmi Co-operative Bank Ltd (SLCB), categorised as a weak bank for the last many years, has declared indefinite closure of all its five branches with effect from October 8.

A public notice to the effect has been put up by SLCB management in front of its head office situated near Old Gujarat High Court in Ahmedabad. The notice stated that the bank decided to pull down its shutters after the staff union proceeded on an indefinite strike following the failure of negotiations held on October 8.

"As soon as a settlement is reached with the staff union, the banking operations would resume," it added.

The bank management has also informed the Reserve Bank of India that it shall not be in a position to participate in the clearing house activities.

RBI sources said that SLCB, which commenced operations in 1965, has been categorised as a weak bank more than a decade ago. It has around 44,000-odd customers and a deposit base of Rs 17 crore. All its five branches are situated in Ahmedabad, they added.

Speaking to Business Standard, Gujarat registrar of co-operative societies R M Joshi said that he has directed the district registrar of co-operative societies M D Chauhan to conduct an enquiry to find out the exact cause for the closure of the bank and submit a detailed report at the earliest.