GTB big clients seek alternate arrangement

Corporate clients, maintaining cash credit limits with Global Trust Bank (GTB), are understood to have sought the Reserve Bank of India's (RBI) intervention for arranging alternate banking arrangement till the time the amalgamation issue is cleared with the Delhi-based Oriental Bank of Commerce.

Some major GTB's corporate clients include Dr Reddy's Laboratories, Apollo Hospitals and Institute of chartered Financial Analyst of India among others.

The three directors appointed by the RBI, including G Padmanabhan, RBI's regional director at Hyderabad, has been made the nodal point for consultation for depositor queries.

According to banking sources, the concern raised by corporate clients that this is the first time a private bank with widespread corporate clientele has gone bust.

In such circumstances, the RBI should have had some mechanism to warn these high net worth depositors and clients so that the normal business operations should not have suffered.

This has virtually brought operations of these corporate clients to a standtill till the time an alternate banking arrangement is made.

Most corporates are AAA borrowers and such clients should not have problem in getting a banking facility, a banker said.