Global Trust Bank (GTB) has received the Reserve Bank of India's approval to publish the financial results for the year 2002-03 in September.
This is to allow the bank to undertake a thorough review of NPAs and provisions to ensure a proper representation of the actual position.
The board of directors of the bank met and took note of the RBI approval on Wednesday, GTB said in a press release today.
More From This Section
The bank said it had earlier approached RBI for a three-month extension up to September for publishing the results. It is working closely with RBI for the finalisation of accounts for the year ended March 2003.
The bank stated in the release that it could recover about Rs 300 crore from critical and NPA accounts over the last 12 months, after putting in place adequate safeguards to contain any additional loan delinquency.
The bank said it had taken a number of steps including scaling down of exposure limits, strengthening the credit policy, reducing/exiting from high risk portfolios, reorganising of credit function etc.
Besides these and other initiatives, positive developments are happening in terms of securitising the existing NPA and critical accounts, the bank noted.
The bank is also taking steps to raise the capital to enhance capital adequacy ratio and also to meet the anticipated growth in the business volumes.
The bank recently increased its authorised capital from Rs 200 crore to Rs 350 crore in March' 03 and appointed Lazard India as the financial advisor to mobilise additional capital.
For the third quarter ended December 2002, GTB recorded a net profit of Rs 8.79 crore as against Rs 8.91 crore in the corresponding period of previous year.
This was possible despite the total income falling to Rs 198.40 crore from Rs 243.43 crore, due to lower interest costs and a significant decline in provisions and contingencies.
The capital adequacy ratio (CAR) of the bank stood at 10.54 per cent at the end of the third quarter.