Government will protect GTB depositors:Chidambaran
Our Banking Bureau
26 July 2004

New Delhi: In the face of the crisis in the Global Trust Bank, government on Monday committed to 'protect' the interests of depositors, with Finance Minister P Chidambaram saying deposits in the bank were 'reasonably safe.'

"Given the information I have, I believe deposits are reasonably safe," he told reporters emerging from the meeting of the Cabinet Committee on Economic Affairs.

Pointing out that the Reserve Bank of India had taken steps 'solely' in the interest of the depositors, the finance minister said the three-month moratorium was to protect them.

"Within the three-month moratorium period, various steps will be taken to safeguard the interests of depositors," he said and asserted the UPA government would exercise greater vigil and take necessary steps.

"GTB had been sliding for several months now, may be not enough vigilance was maintained in the past. In the new government, I have urged all concerned to exercise greater vigilance," Chidambaram said.

Meanwhile, Banking Secretary N S Sisodia said all private banks had been put under vigilance.

While assuring the investors in GTB that there was no need to panic, he said action was being taken to protect the depositors' interests.

"There is no need to panic since RBI is seized of the matter," he said.

Asked about reports on GTB's merger with some other bank, he said, "It is for the central bank to decide with which bank it has to be merged." He said all options were being evaluated.

List of reports on Global Trust Bank