Run on yet another Surat Bank

Surat-based Financial Co-operative Bank witnessed a run on deposits on Saturday. The bank had to be kept open till evening to meet the rush.

Financial Bank CEO H B Desai said: "There was a rush at the bank for withdrawals on Saturday, but we have no liquidity problems and have allowed customers to withdraw their money."

"Normally, average daily withdrawals from our bank are in the region of Rs 70 to 80 lakh, but Rs 1.20 crore was withdrawn on Saturday. As compared to daily receipts of Rs 70 to 80 lakh, the receipts were Rs 65 lakh on Saturday. There is, however, no reason to believe that Financial Co-operative Bank has gone weak," Desai said.

"Saturday's withdrawals was largely owing to the panic among depositors following the collapse of several co-operative banks in recent weeks. Financial Bank has invested more than Rs 10.50 crore in other banks and government securities. The bank's total deposits are over Rs 8 crore, while our loan advances are Rs 2 crore," Desai added.

The Financial Co-op Bank, located at Abhishek Textile Market, Ring Road, is a single branch bank. It was founded in February, 1999.