Panic is over for depositors:Narang
27 July 2004
Delhi: The Reserve Bank of India's swift move to announce
the merger of Global Trust Bank (GTB) with Oriental Bank
of Commerce (OBC) has come as a wonder-balm for the worried
and agitated depositors of GTB, the OBC chairman and managing
director, B.D. Narang, has said.
assured that the interests of all stakeholders in GTB,
including depositors, borrowers and employees, would be
fully taken care of in the wake of the merger. "We
will take care of the interests of all stakeholders. No
one will suffer on account of the merger," Narang
he said that the only section that would face the music
would be the chronic defaulters of GTB against whom OBC
would be taking stiff action. "I don't think that
GTB had made much use of the Securitisation Act (that
gives lenders immense powers to take action against defaulters
outside the legal process). We would like to initiate
a dialogue with all defaulting borrowers as soon as possible
and if the defaulters are still reluctant to pay up, then
the Securitisation Act will be used," Narang said.
said that though OBC's capital adequacy would come down
from the present level it would still be above the mandatory
minimum of 9 per cent. "If need be, I would raise
Tier-II debt for which I already have the necessary permission,"
the OBC Chief said. He said that the bank also expects
to get tax relief on account of the merger.
would like to blame my experimentation with delegation
of power and full dependence on the senior management
team (for the bank's failure)," he said.
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