GTB's
inherent strengths outweigh its NPAs: Gande
Our
Banking Bureau
26 July 2004
Hyderabad:
Global Trust Bank (GTB) managing director, Sudhakar
Gande, yeaterday said, "The bank still enjoys unperturbed
strengths such as technology platform, multiple delivery
channels network, retail and corporate customer base,
internal systems and procedures and talented technology
in place. We still have good scope for network expansion
and capable of offering new products."
Admitting that the bank suffers serious weaknesses such
as higher NPAs and strained capital adequacy, he said,
"The bank's inherent strengths still overweigh
its NPAs and losses. While NPAs and losses are clearly
reflected in the balance sheet, unfortunately, the franchisee
value can not be reflected."
Stating
that the current customer base of nearly one million
was scalable to a level of at least three million over
the next five years, Gande said the bank can generate
business volumes of at least Rs 4,000 crore with a capital
infusion in the range of Rs 500 crore.
GTB currently has a delivery channel network of 104
branches and 275 ATMs in 34 cities across the country.
Equipped
with a trained force of 1,300 plus employees, the bank
has nearly one million customers.
The
bank also has strong exposure to developed States of
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu
with more than 70 per cent of branches in seven cities
and four metros.
"It
takes ages for a bank to build such a large quality
customer base, which is well spread across the country.
The quality and spread of our retail and corporate customer
base is one of the best in the industry. We have put
in place strong internal systems and procedures which
will make sure that the problems of the past are not
recurred," Gande said.
"People,
procedures and systems are ready to ensure a huge growth
in business once necessary capital is induced. The existing
infrastructure can support multi-fold growth in business
with 
minimal
investments. The bank is confident that its inherent
strengths will definitely attract the prospective investors,"
Gande said.
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