Gtb Undergoes Second Recast In 6 Months

Global Trust Bank founder-director Sridhar Subasri has stepped down from the board. He, however, continues to be the executive director.

The board has undergone its second restructuring in less than six months. Sailendra Narain, former chairman and managing director (CMD) of Sidbi, has been inducted as a new director, along with P Kotaiah, former executive chairman of Nabard. S K Soni, former CMD of Oriental Bank of Commerce has been invited to join the board.

The changes, decided at the board meeting on July 27, were conveyed to the stock exchanges on Wednesday.

"I have quit the board to set up the tradition of best corporate governance," Subasri said.

"At present, an internal committee of the bank is reviewing all the problem issues including the capital market exposure. The bank wants to salvage and learn from whatever had gone wrong. There will be review and analysis of these issues.

Also the Joint Parliamentary Committee (JPC) is also looking at the workings of the bank. When his decisions are being analysed he wants the board to review them dispassionately without his presence," said a senior official.

GTB has been on a revamping exercise ever since the resignation of its founder CMD Ramesh Gelli, owning responsibility to the bank's over-exposure to the market in April and appointment of R S Hugar as the new CMD.

Hugar had reshuffled the portfolios of senior executives in May. The bank has changed the portfolio of three presidents. A Anchan, who was president (treasury), has been given additional portfolio of credit and investment banking. P C Narayan who was in charge of information technology and retail banking has been given the additional charge of operations, while K A Choudhury, who was in charge of credit, will look after the human resources, corporate affairs, accounts and planning.

Subasri is further understood to have told the board that he could return as a director on the board after the non-performing assets review is through and his name is cleared. The review is likely to be completed in four-five months.