GTB
management hopeful of a solution in 3 months
Our
Banking Bureau
26 July 2004
Hyderabad:
The Global Trust Bank management expressed hope that
it will be able to find a solution to the bank's problems
within the moratorium period imposed by the Reserve Bank
of India.
Acting
on the apex bank's request, the central government issued
an order of moratorium for a period of three months
with effect from July 24 to October 23.
"We
are also surprised by the RBI move. However, we're optimistic
of finding a solution to the crisis within three months.
The solution could be funds infusion by a strategic
investor or a merger with any bank or any such solution
as considered in the best interests of the bank,"
GTB managing director Sudhakar Gande told a hurriedly
convened press conference on Saturday.
Regretting
the inconvenience caused to the customers, Gande sought
to describe the RBI move as "one of the common
tools employed by central banks around the world to
find solutions to the banking problems." He clarified
that the bank's board had not been superseded, but strengthened
with the induction of three RBI-nominated directors.
Meanwhile,
GTB founder and promoter Ramesh Gelli said, the central
bank's move is surprising as GTB's application for raising
capital was pending before it.
He
insists that the bank is an attractive proposition for
any private bank or even a foreign bank looking for
an aggressive growth in India.
"The
bank suffered a setback during the capital markets controversy
but recovered after the Joint Parliamentary Committee
had given a complete clean chit to the bank after its
detailed enquiry," he said.
List of reports on Global
Trust Bank
