The experience gained from the path breaking experiment of formation of labour bank has been reported and SWOT analysis has been carried out. The strengths, weaknesses, opportunities and threats of the Labour Bank have been reported. The capital of Labour Bank is the working capacity of the registered labourers. The Bank lends, even though for a short period, the working capacity of the labourers. The significance of Labour Bank experiment lies in the need of the agricultural sector to break the shackles on account of labour-related problems. The experience gained from this experiment can be used to develop similar labour organizations in other panchayaths also. The study has offered some suggestions based on the Labour Bank in Kunnathukal Panchayath in Thiruvananthapuram district of Kerala and its current relevance for implementation of rural employment programmes.