The Global Trust Bank (GTB) has sold collateral of around Rs 50 crore in the last three months in order to pare its exposure to the Ketan Parekh (KP) group. GTB's total exposure to the group is, at present, around Rs 207 crore.
The bank has also approached the Bombay Stock Exchange for taking over a Rs 28 crore deposit of Ketan Parekh which is in the joint names of the bank and the BSE.
GTB's funded exposure to the KP group is pegged at Rs 181 crore, while the non-fund exposure, which is in the form of guarantees, is Rs 26 crore.
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A part of the guarantees of around Rs 11 crore will expire in August, while the balance would expire by December, sources said.
The bank had a funded exposure of Rs 222 crore to the KP group in May. It sold collateral of around Rs 50 crore to recover the interest and part of the loans due from the group.
Additionally the bank has also received a payment of around one crore. GTB had sold off collateral of around Rs 33 crore of the Ketan Parekh group in April and May.
The gap between the collateral given and the loan taken by the group, however, continues to be around Rs 40 crore, the same position as in May.
"The liquid shares were sold off in order to cut down the loans due to us. The bank had already provided Rs 50 crore for the capital market exposure. The bank will be making additional provisions as and when required," said the official.
The bank's present market exposure including fund and non-fund based exposure is pegged around 22.74 per cent or Rs 796 crore.
Its exposure to broking companies is around Rs 530 crore, to investment companies at Rs 126 crore and investments in stock market was at Rs 140 crore.
The exposure of the bank on May 31 2001, however, was at 19.4 per cent. The bank's investment in equity at that period was lower at Rs 77 crore.
The bank has collaterals of around 31 scrips, mostly new economy scrips such as HFCL, Mascon Global, Zee, DSQ Software, Shonkh Technology.