The account holders of the Gujarat Industrial Co-operative Bank (GICB) assembled outside the bank’s head office at Bhagal in Surat on Monday morning to withdraw their savings after they learnt that the Reserve Bank of India (RBI) has declared that the bank does not have enough liquidity. The bank has 1.52 lakh account holders in Surat.

RBI officials had earlier visited the GICB in Ahmedabad on Saturday. After checking the balance sheet they had declared that the bank is low on liquidity. The RBI officials also claimed that the bank had too many NPA (Non Performing Assets), which had led to low liquidity.

The bank has three branches in Surat city, nine in entire south Gujarat and overall 20 branches in the state. The account holders rushed to the bank’s branches for withdrawing their cash from their accounts. Some of them had saved money for their children’s marriage and other purposes and were seen crying.

Mahidharpura police rushed to the GICB head office at Bhagal and took control of the situation before anything untoward could occur. Praveen Mehta, the bank’s regional manager, later allowed the customers to withdraw only Rs 1,000 from their accounts. Administrators have been appointed at the bank to look after the day to day transactions.

Mehta said all the 20 branches in the state have Rs 458 crore of deposits; Rs 252 crore advances (loans and other facilities); Rs 14 crore of assets; Rs 152 crore as net reserve; while Rs 64 crore are with government securities.