The Hindu : Business : `Merger will be smooth'

Online edition of India's National Newspaper
Wednesday, Jul 28, 2004

Business

Business

`Merger will be smooth'

By Our Special Correspondent

HYDERABAD, JULY 27. The due diligence of Global Trust Bank (GTB) is expected to be completed in four weeks, and the entire merger process is likely to be completed in 5-6 weeks, according to Rajiv Madhok, General Manager of Oriental Bank of Commerce (OBC).

Addressing a press conference here on Tuesday, Mr. Madhok said consequently they would also try to get the three months moratorium on GTB to be lifted as soon as possible.

Asked how much of a hit the OBC balance sheet will take on account of the merger, Mr. Madhok felt that there would be a gap of Rs. 800 crores, which they expect to cover through better recoveries, tax breaks and internal accruals.

He was confident that OBC would not take a hit, but in fact be able to show better results. The bank was now ranked 6th and post-merger, they would improve their position. Overall, he felt that the merger would be a smooth affair, but declined to comment on the fate of small investors saying `at the moment we are looking at the bank per se".

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