The Hindu : GTB board nod for raising FII limit

Online edition of India's National Newspaper
Wednesday, Sep 24, 2003

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Business

GTB board nod for raising FII limit

By Our Special Correspondent

MUMBAI SEPT. 23. The board of Global Trust Bank today approved, in principal, the proposal to offer further shares through a foreign direct investment (FDI) up to 49 per cent to foreign investors under the automatic route as permitted for a private sector bank. The board has constituted a special committee comprising three directors to identify the foreign partner.

"With the decision taken by the board to revitalise the bank, I am certain we will be able to strengthen the financial position of the bank and meet the capital adequacy requirements stipulated by the Reserve Bank of India. This will help us steer the bank back to profitability and help the bank take its rightful place among significant players in private sector banking. We hope that with the new committee in place the entire process of identifying the right foreign partner will speed up. We see a bright future for the bank with the infusion of new capital," said Sudhakar Gande, Managing Director.

The committee appointed by the board will meet regularly to evaluate various proposals of the bank. The focus will be to examine the various resources available to the bank for the process and find the right partner with a unique combination of market intelligence and a proven track record and to make suitable recommendations to the board stated a bank release. The bank's board will be meeting on September 30, to consider the financial results for the year ended March 31, 2003 and for the quarter ended June 30, 2003.

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