| The board is expected to consider three key issues: progress on the joint investment offer made by US-based private equity investor New Bridge Capital and DBS of Singapore, explore the possibility of roping in other potential investors such as Shinsei Bank of Japan, and also take a decision on its proposed rights issue. |
| Sources close to the development said the meeting assumed significance because New Bridge and DBS have indicated that they will come out with a revised capital infusion plan between February 15 and 20. The two foreign investors have now decided to co-invest in the bank's equity. |
| "In the beginning, New Bridge felt that a Rs 600-650 crore infusion was enough to nurse the bank back into health, but DBS was of the opinion that a Rs 8,00-1,000 crore infusion will be needed, since it presumed a higher growth rate for the bank," sources said. |
| Both foreign investors had different estimates about the gross NPAs of the bank, the write-off requirements and growth potential. |
| After coming to a decision on co-investment, both the players are understood to be working on issues related to the price at which they will make the investment and the terms and conditions of the offer. |
| The sources said. With the government allowing foreign direct investment of up to 74 per cent, the investors might ask for more than 51 per cent or a minimum 51 per cent stake in the bank, sources indicated. |
| The duo till recently were asking for the then permissible 49 per cent equity stake in GTB. The board will also consider the investment offer made by Shinsei Bank, which had shown serious interest in investing the bank. |
| "Shinsei is three months behind the first two investors, but is keen to invest in the bank. They are also likely to come out with a proposal by end of this month," sources said. |
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