Merger decision fails to assuage GTB depositors

The decision by the Reserve Bank of India (RBI) to amalgamate Global Trust Bank (GTB) with Oriental Bank of Commerce (OBC) failed to pacify panicky depositors of GTB who continued to throng the bank's branches to withdraw money.

Many depositors said they planned to freeze their accounts after withdrawing all the money as soon as possible.

"Payment up to Rs 10,000 will be made from this branch to account holders. Deposits in safe deposit lockers can be withdrawn after 5 pm," said manager of GTB at C G Road branch in Ahmedabad.

While small depositors were seen patiently standing in queues to withdraw money, those with big deposits were planning to approach the apex bank to get back their entire amount.

Many depositors withdrew up to Rs 10,000 from their fixed deposits.

"We have lost faith in these private banks. They are no better than co-operative banks in the state. I will withdraw my entire amount as early as possible and deposit it in any nationalised bank or in the post office," Sarif Ahmed, a businessman who has a fixed deposit in GTB C G Road branch, said.

The central government had on July 24 placed GTB under moratorium for a three-month period till October 23, partially freezing its operations.

Nitesh Parmar, who has a deposit of around Rs 1 lakh in GTB's C R Road branch, said, "All my family members have accounts in this bank. I have over eight pass books, but the officials are allowing us to withdraw only Rs 10,000."

"These private banks send their marketing executives to our houses and offer a number of facilities. They convince us that it is beneficial to transfer our bank accounts from nationalised banks. Then the private banks suddenly go weak," P B Umesh, a GTB depositor, said.

"I have accounts in HDFC Bank and ICICI Bank as well. I will withdraw all my money from these banks and will do banking with nationalised banks only. Nationalised banks have improved their services in the last few years," said Umesh.

"I had deposited over Rs three lakh on the day before the RBI placed GTB under moratorium. Now I can withdraw only Rs 10,000. The money was kept in the bank for purchasing property and now I will approach the RBI to release my money at the earliest,: said Anishbhai, another depositor of GTB.