GTB board accepts Hugar’s resignation

Our Banking Bureau

Mumbai, Dec 3: The board of directors of Global Trust Bank (GTB) on Monday decided to set up an Interim Management Committee of the board comprising four board members till a successor to its outgoing chairman and managing director RS Hugar is found.

After a GTB board meeting in Mumbai, the bank said the four members on the committee will be former managing director of the Small Industries Development bank of India Sailendara Narain; former chairman of the National Bank for Agriculture and Rural Development Dr Kotiah; former Parke Davis chairman VM Agadi; and Ravi Appaswamy, hotelier and Chennai-based industrialist Ravi Appaswamy. Dr Narain will be the chairman of the interim committee.

The outgoing CMD Hugar said: “After having seen the bank successfully through a period of rough weather, and setting the bank back firmly on a path of high growth, I would certainly like to continue and see the bank attain its peak as before, but for entirely personal reasons, I have requested the board to relieve me of my responsibilities.” He added: “There had been a few hiccups initially, but we have overcome all those things and are looking forward to growth.”

Mr Hugar had joined GTB as its chairman and managing on April 12, 2001. During his tenure, the bank added about 80,000 new customers, opened nine branches and 25 ATMs. During the same period, GTB’s capital market exposure was brought down by Rs 350 crore and over Rs 200 crore of recovery from difficult accounts.

GTB has decided to focus aggressively on growing all aspects of business and in particular, retail. The target business level for March 2002 is set at Rs 13,500 crore. The bank also plans to increase its geographical presence by adding 14 new branches to take the total tally to 100 branches as well as expand the ATM network to grow to 200. Mr Hugar added that the two most important things during his tenure was that the average age in the bank was between 32 years and 36 years and he almost forgot his age while working with them. He said that he had never thought that he would preside over such an eminent board of personalities.

Said GTB director, Dr Jayant Madhab: “We were hoping that we would be able to persuade Mr Hugar to stay on, atleast for some more time. However, Mr Hugar, even at the time of joining wanted this arrangement only for six to nine months and he persisted on his need to be relieved. The board has reluctantly accepted his resignation this morning”.

According to Mr Hugar, managing liquidity in April-May 2001 and a strategic shrinking of balance sheet would be remembered.
GTB executive director, Sridhar Subasri said the bank was looking at bring its capital market exposure to the required five per cent
by the end of the current financial year.