AP urban co-op banks sail smooth amid falling gold

The urban co-operative banks in Andhra Pradesh have been fully insulated from the sudden fall in the gold prices. Thanks to the cautious and tight measures adopted by the banks in advancing loans against gold and gold instruments, said the Andhra Pradesh Urban Banks and Credit Societies Association.

By doing this, the body said they were well-off financially in comparison with various other private gold financial companies operating in the state. Numbering 103, the state urban cooperative banks have advanced about Rs 2,000 crore during the current fiscal towards gold mortgage -- nearly 50 per cent of the banks' total lending portfolio.