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GTB
recovers Rs 300 crore
Our
Banking Bureau
27 June 2003
 New
Delhi: Global Trust Bank has recovered about Rs 300
crore from critical and non-performing asset (NPA) accounts
over the last 12 months.
Special
recovery cells have been set up and dedicated teams are
formed to monitor critical accounts. Necessary legal actions
have been initiated under Debt Recovery Tribunal and new
Securitisation Act. All these efforts made by the bank
in recovering the dues have yielded positive results.
The
bank has also put in place adequate safeguards to contain
any additional loan delinquency. To this end, the bank
has taken a number of steps including scaling down of
exposure limits, strengthening the credit policy, reducing/exiting
from high risk portfolios and reorganising credit function.
Besides the above, other positive and important developments
are happening in terms of securitising the existing NPAs
and critical accounts.
The
board decided to have a comprehensive assessment of the
NPAs and provisions required thereof. In this regard the
bank is working very closely with the Reserve Bank of
India (RBI), which entails some more time for finalisation
of accounts for the year ended March 2003.
 Accordingly,
the bank has sought permission from the RBI for extension
of time for a period of three months for publishing the
accounts of the financial year 2002-03, that is up to
September 2003. The board of directors of the bank has
taken on record the RBI approval at its meeting held on
25 June 2003 and decided to publish the financial results
after a thorough review of the NPAs and provisions to
ensure a proper representation of the actual position.
The
bank has also initiated the capital raising exercise to
improve the capital adequacy ratio and also to meet the
anticipated growth in business volumes. Towards this,
the bank has already increased  its
authorised capital from Rs 200 crore to Rs 350 crore in
March 2003 and appointed Lazard India Ltd as its financial
advisor.
All
the above steps are expected to have a positive impact
on the balance sheet.
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