Global Trust Bank smells rumours fishy
By Our Banking Bureau | 08 Jun 2002
A
large portion of the premature withdrawals of a little over Rs 6
crore in the last couple of days were witnessed in the stretch
between Ameerpet and Chandanagar here from three branches and 10
ATMs.
GTB has around 15 major corporate clients in this region for salary accounts with over 10,000 individual accounts. These corporate majors include Infosys Enterprises, Dr Reddys Laboratories, Asian Paints, Tata Telecommunications, ITW Signode India and InfoTech Enterprises, among others.
The GTB management is suspecting foul play by competitors, since a couple of private sector banks opened their kiosks in front of some of the affected branches and ATMs of GTB in the twin cities on Thursday.
Stating that the bank will probe the matter to identify the root cause for the latest panic withdrawals, GTB managing director Sudhakar Gande says he will not rule out the role of competitors behind the panic withdrawals.
Gande says the management successfully addressed the problem of panic withdrawals and brought back the business to normal. In a move to boost the confidence levels of the depositors, each of the 52 ATMs in the twin cities was replenished with cash of around Rs 20 lakh to meet any withdrawal demand.
Our primary and immediate objective in the last couple of days was to meet the expectations of our customers by entertaining withdrawals, irrespective of their maturity schedules. We will now look into the cause of the problem and draw up suitable strategies to effectively counter such problems in the future, he says.
