GTB management hopeful of a solution in 3 months

GTB CRISIS

The Global Trust Bank management expressed hope that it will be able to find a solution to the bank's problems within the moratorium period imposed by the Reserve Bank of India (RBI).

Acting on the apex bank's request, the central government issued an order of moratorium for a period of three months with effect from July 24 to October 23.

"We are also surprised by the RBI move. However, we're optimistic of finding a solution to the crisis within three months. The solution could be funds infusion by a strategic investor or a merger with any bank or any such solution as considered in the best interests of the bank," GTB managing director Sudhakar Gande told a hurriedly convened press conference on Saturday.

Regretting the inconvenience caused to the customers, Gande sought to describe the RBI move as "one of the common tools employed by central banks around the world to find solutions to the banking problems". He clarified that the bank's board had not been superseded, but strengthened with the induction of three RBI-nominated directors.

Meanwhile, GTB founder and promoter Ramesh Gelli said, the central bank's move is surprising as GTB's application for raising capital was pending before it.

He insists that the bank is an attractive proposition for any private bank or even a foreign bank looking for an aggressive growth in India.

"The bank suffered a setback during the capital markets controversy but recovered after the Joint Parliamentary Committee had given a complete clean chit to the bank after its detailed enquiry," he said.