Global
Trust Bank smells rumours fishy
Our Banking Bureau
8 June 2002
 Hyderabad:
Suspecting foul
play behind the latest panic withdrawals, the management of Global
Trust Bank (GTB) has decided to approach the Reserve Bank of India
(RBI) seeking action against entities allegedly resorting to the
unethical practice of spreading rumours on the financial health of
the bank.
 A
large portion of the premature withdrawals of a little over Rs 6
crore in the last couple of days were witnessed in the stretch
between Ameerpet and Chandanagar here from three branches and 10
ATMs.
GTB has around 15 major
corporate clients in this region for salary accounts with over
10,000 individual accounts. These corporate majors include Infosys
Enterprises, Dr Reddy’s Laboratories, Asian Paints, Tata
Telecommunications, ITW Signode India and InfoTech Enterprises,
among others.
The GTB management is
suspecting foul play by competitors, since a couple of private
sector banks opened their kiosks in front of some of the affected
branches and ATMs of GTB in the twin cities on Thursday.
Stating that the bank
will probe the matter to identify the root cause for the latest
panic withdrawals, GTB managing director Sudhakar Gande says he
will not rule out the role of competitors behind the panic
withdrawals.
Gande says the management
successfully addressed the problem of panic withdrawals and
brought back the business to normal. In a move to boost the
confidence levels of the depositors, each of the 52 ATMs in the
twin cities was replenished with cash of around Rs 20 lakh to meet
any withdrawal demand.
 “Our
primary and immediate objective in the last couple of days was to
meet the expectations of our customers by entertaining
withdrawals, irrespective of their maturity schedules. We will now
look into the cause of the problem and draw up suitable strategies
to effectively counter such problems in the future,” he says.
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