Another Gujarat Co-Op Bank Fails

The co-operative banking sector in Gujarat was thrown into turmoil after Surat-based Suryapur Co-operative Bank closed four branches on Saturday, becoming the seventh bank in Gujarat in the past 18 months to plunge into a liquidity crisis.

Thousands of depositors across the state rushed to co-operative banks today to withdraw money. Until a few days ago, the bank was being chaired by Rajya Sabha member Kanaksinh Mangaroa, elected on a BJP ticket. However, Mangaroa said he had handed over charge to one Babubhai Gamethi before the crisis erupted.

Last Friday, the Diamond Jubilee Co-operative Bank, also based in Surat, plunged into a liquidity crisis and closed operations. It was immediately preceded by Visanagar Nagarik Sahakari Bank and Anand People