Global Trust Braces For Retail Drive

Global Trust Bank (GTB), as part of its strategy for improving overall yield on assets, has decided to add retail assets to its portfolio.

The bank will kick off the move through housing, car and personal loans. "These products will be launched very soon. We are looking for an asset size of about Rs 200 crore in this segment in the current year," Sudhakar Gande, the managing director of GTB, said.

He said that the product range to retail customers would be further expanded since it is traditionally a high-yield segment. The bank had already launched a credit product, Unnati, to take care of the credit needs of the small and medium enterprises. The bank considers it as low risk product with good returns.

Gande said that it was decided to focus on non-fund exposure with a business target of Rs 2,000 crore for the year, as compared to Rs 1,300 crore in the previous year.

Admitting that the bank's asset quality and image was under pressure during last fiscal, Gande, in a communique to the shareholders, said that bank could withstand the stress with action plans, and derisking had been done to a large extent.

"We will restore credibility. We shall fortify investor confidence. Our shareholders can look forward to an improved top and bottom line. They can count on us to rebuild shareholder wealth," Gande asserted.

Assuring that Asset quality and prudential norms have been given priority now, he said: "Today, there are early warning systems, credible and transperent work practices, decentralised operations and accountability with the decision-maker."