The large-scale withdrawal of deposits within a short time resulted in severe liquidity problems for the bank which at that time held about US $ 160 million equivalent of inter-bank deposits from over 200 UCBs in the State and from other States, which obviously posed a systemic risk.
The Gujarat episode was followed by another major crisis in the state of Andhra Pradesh in 2002,  BIS Review 111/2009  1  when one of the largest banks in the state faced a run, following a newspaper report of an inquiry into the affairs of the bank by the State Registrar of Cooperative Societies.