RBI Okays GTB Extending Results

Hyderabad, June 26: | Updated: Jun 27 2003, 05:30am hrs
The Reserve Bank of India (RBI) has allowed Global Trust Bank (GTB) to extend the time for finalisation of financial results for the year 2002-03 by three more months, according to a statement released by the bank here on Thursday.

"The board of directors of the bank has taken on record the RBI approval at its meeting held on Wednesday and decided to publish the financial results after a through review of the NPAs and provisions to ensure a proper representation of the actual position," the bank stated. Earlier, the bank has sought permission from the regulator for extension of time for a period of three months, ie, upto September 2003, for publishing the accounts for the financial year 2002-03. The board felt the need to have a comprehensive assessment of the NPAs and provisions, thus requiring some more time for the finalisation of accounts, the release added.

Further to improve and impact the balance sheet of the bank, GTB has also initiated to raise the capital to meet the anticipated growth in the business volumes. It has already increased the authorised capital from Rs 200 crore to Rs 350 crore in March 2003 and appointed Lazard India Ltd as financial advisor, the bank said. The bank claimed that it has already taken adequate safeguards to contain any additional loan delinquency, which include scaling down of exposure limits, strengthening the credit policy, reducing/exiting from high risk portfolios, reorganising of credit function etc.

While the bank has already recovered about Rs 300 crore from critical NPA accounts, it has stepped up legal action against others under DRT and new Securitisation Act, the release said.