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Shree
Laxmi Bank may be liquidated
Our Banking Bureau
17 October 2001
 Mumbai:
The Registrar of Cooperative Societies (RCS) of Gujarat has sought
RBI directions for liquidation of Shree Laxmi Cooperative Bank (SLCB).
The RCS has also issued a
show-cause notice to SLCB asking why it should not be superseded,
in view of the financial irregularities detected in the bank. The
bank has been directed to file its reply by 24 October.
Earlier, the RCS had
asked for appointment of an administrator. But, the RCS now says
the present situation looks grim for the cooperative bank. RCS
sources said: “The request for appointment of an administrator
was withdrawn because there does not seem anything left to
administer.”
The RCS also said the
situation does not look all that  bleak
for the depositors. Ninety-five per cent of the depositors have
deposits of below Rs 1 lakh, which are covered by the Deposit
Insurance and Credit Guarantee Corporation of India. All this
money is safe and secure, and in the event of liquidation the
depositors will be repaid with interest, the sources said.
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