GTB to wrap up capital funding by February-end

Global Trust Bank (GTB) is expecting to complete its capital raising exercise by February end. The bank recently raised its authorised capital to Rs 650 crore from the earlier Rs 350 crore. Its existing paid-up capital stands at Rs 121.36 crore.

"We are looking at mopping up over Rs 500 crore through a preferential issue, which is expected to be made by this month end," Sudhakar Gande, managing director, said. Declining to reveal the names, he said that the bank is in advanced stage of negotiations with few global investors.

The bank has appointed Lazard India and JM Morgan Stanley as financial advisors. A special committee comprising three directors was also constituted for finalising the terms of investment.

"Once the capital infusion is over, we will focus on business growth. Long term and short term growth plans were already drawn and we hope to regain glory," Gande said.

Meanwhile, the bank has reported a 82 per cent drop in net profit at Rs 1.59 crore for the quarter ended December against Rs 8.79 crore registered for the corresponding period last fiscal.

With both interest income and other income declining, total income slid by 29 per cent to Rs 140 crore from Rs 196.4 crore.

Commenting on the poor performance, Gande said the fall in interest rates as well as the treasury yield stabilising at current levels, the topline and bottomline were hit.

"We expect the present trend to continue for the next few quarters for the overall banking industry,"Gande added.