Oriental Bank of Commerce to take over GTB

Our Banking Bureau
26 July 2004

Global Trust Bank will be merged with Oriental Bank of Commerce, the Reserve Bank of India said on Monday.

Oriental Bank of Commerce on Monday also announced it would take over the troubled Global Trust Bank facing severe financial problems, that had prompted the RBI to impose a three-month moratorium.

"The scheme of amalgamation would be put on the web site and RBI and the Securities and Exchange Board of India are looking to proceed forward in the matter expeditiously, RBI executive director," Usha Thorat said.

The scheme of amalgamation would be available for comments till August 7.

There will be no swap arrangement for GTB shareholders when the private sector bank is amalgamated with the Oriental Bank of Commerce.

OBC had made the offer for the merger proposal as it perceived synergy between these two banks, she said, adding that the merger will be effective once the government sanctions the scheme of amalgamation.