Andhra co-op urban banks seek Rs 10-crore crisis management fund

Andhra Pradesh State Co-operative Urban Banks Federation Limited is urging the state government to set up a 'liquidity crisis management fund' with an initial amount of Rs 10 crore to bail out the urban co-operative banks, which may face liquidity crisis in the future.

Addressing a press conference, G Rama Moorthy, chairman of the federation, said: "Even strong urban co-operative banks are falling into liquidity crisis because of wide-spread rumours. To overcome this, we immediately need some liquidity support for a three to six-month period. Hence, we are requesting the state government to set up a liquidity crisis management fund for urban co-operative banks."

"If the government supports us, our federation will also contribute some amount to the crisis management fund," Rama Moorthy said.