Hyderabad: It now seems most likely that Global Trust Bank (GTB) shareholders will be left holding the dirty end of the stick.

At a hastily arranged, short press conference, managing director Sudhakar Gande of Global Trust Bank confirmed the merger of Global Trust Bank with the government owned-Oriental Bank of Commerce (OBC).
(See: Amalgamation Scheme) He said the merger would benefit both the banks since, "Both the banks depended on Infosys' banking solution Finacle, which would make the integration a lot more easier. "

	Similar moratoria were issued in case of Benaras State Bank, Nedungadi Bank, Sikkim Bank and South Gujarat Local Area Bank.
	The government now is asking the investors not to panic, even in past cases of failures, like in Nedungadi Bank and Benaras Bank, no depositor had lost money.
	As on June 30, 2004, the Indian promotors of GTB hold 19.28 per cent stake on the equity base of Rs 121.36 crore, while the majority 51.28 per cent is held by the Indian public.
	Prominent Indian promoters include Ramesh Gelli (1.83 per cent), Gajanan Financial Services (2.43 per cent), G Premkala (1.88 per cent), Jayanta Madhab (1.24 per cent).
	Private corporate bodies hold 20.54 per cent stake while banks, financial institutions and insurance companies hold 0.56 per cent.
	NRIs/Overseas corporate bodies hold 4.94 per cent stake in GTB while foreign promoters of the bank hold 0.25 per cent stake.
	Securities and Exchange Board of India had banned the promoters from accessing the capital markets in December 2002 over alleged involvement in manipulation of bank scrip prior to announcement of the merger plans with the UTI Bank.
	The investigations by the market regulator had also found that GTB promoters had colluded with certain Ketan Parekh promoted entities in price manipulation.

He added that OBC, a very successful PSU bank, had agreed to absorb all the employees of GTB and their salaries would remain untouched for the next three years. Assuring GTB's depositors that they would not have much to worry about, he said, "the merger is very good news from GTB's point of views as all the depositors money would be absolutely safe."

He also added that all corporate accounts comprising mainly salary accounts would also be protected since these would be transferred to OBC.

However, Gande was unable to give any concrete assurance as to the fate of the shareholders of GTB. Acknowledging that the net worth of GTB was down to nil, he said, "The Reserve Bank of India was looking at various proposals to protect shareholders' interests but as of now nothing concrete had emerged."

According to him, "GTB has about 1,60,000 investors and a large number from Andhra Pradesh."

Replying to reporters' queries he said GTB's problems were historic. In the past two years efforts were being made to bring an end to its problems by bringing in another bank to rescue it. He said he was happy "That the efforts had fructified in OBC, a successful bank, taking over GTB."

According to published statistics, as on June 30, 2004, the Indian promoters of GTB hold 19.28 per cent stake in the bank's equity base of Rs121.36 crore, while the Indian public holds the majority 51.28 percent stake.

Prominent Indian promoters include Ramesh Gelli (1.83 per cent), Gajanan Financial Services (2.43 per cent), G Premkala (1.88 per cent), Jayanta Madhab (1.24 per cent).

Private corporate bodies hold 20.54 per cent stake while banks, financial institutions and insurance companies hold 0.56 per cent. NRIs/overseas corporate bodies hold 4.94 per cent stake in GTB while foreign promoters of the bank hold 0.25 per cent stake.

Reacting to the news of the merger, a shareholder commented, "It is a big relief that GTB is to be merged with Oriental Bank of Commerce. I have decided never to park any money with a private sector entity."

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	Despite bankruptcy
	Investors — the biggest losers
	Fall of a banker
	The market reaction
	The cost of acquiring GTB

List of reports on Global Trust Bank

List of general reports on banks