The Hindu : Run on GTB Hyderabad branches

Online edition of India's National Newspaper
Friday, Jun 07, 2002

Business

Business

Run on GTB Hyderabad branches

By Our Special Correspondent

HYDERABAD JUNE 6. Faced with panicky withdrawals in a few ATMs and branches in Hyderabad since late Thursday afternoon, Global Trust Bank (GTB) sought to reassure customers of its financial stability, and attributed withdrawals to rumours by `vested interests' and a `lobby.'

Speaking to The Hindu, Sudhakar Gande, Managing Director, GTB, said the bank was fundamentally strong with a Rs. 6,444 crores deposit base, Rs. 2,000 crores invested in bonds (SLR), and Rs. 300 crores in cash reserves-all in excess of the norms prescribed by the Reserve Bank of India. In addition it has Rs. 500 crores liquid assets.

Mr. Gande said the bank was `absolutely sound' with a net worth of Rs. 600 crores, and there were very few others like this, he felt. The panic withdrawals were confined to a geographical strip in Hyderabad which had about half a dozen ATMs and branches. These were to the tune of Rs. 70 to Rs. 80 lakhs as against Rs. 30 to Rs.40 lakhs on normal days. The branches and ATMs were `flush' with funds today, and there was no need for panic he assured customers.

On Friday it pressed into service five cash vans and made available Rs. 10 crores. Already withdrawals had come down by late afternoon, he said.

Send this article to Friends by E-Mail

Business

Stories in this Section

UTI seeks bailout package

Run on GTB Hyderabad branches

PSBs to go for Internet banking

Arvind Remedies' revamp exercise

SAIL's higher sales in April-May

Initial gains not fully held on BSE

SEBI directive to Swedish Match

BHEL bags ONGC contract

ITC pact with Maple Leaf

Opto Circuits buys HLL division