Ifc Trims Gtb Pie To 10.38%

Even as merger talks were on between Global Trust Bank (GTB) and UTI Bank, the International Finance Corporation (IFC), one of the founder-stakeholders and strategic investors in GTB, sold some of its holding in the bank in the market.

As a result, IFC's stake has come down to 10.38 per cent from 11.52 per cent as on March 31, 2001. IFC sold around 14 lakh shares between December and March, according to a senior GTB official.

The shareholding pattern reveals that promoters and their associates hold 23.23 per cent, FIIs 6.98 per cent and non-resident Indians and overseas commercial borrowings account for 10.53 per cent.

In its latest annual report, the bank has stated that its exposure (both funded and non-funded) to brokers stood at Rs 740 crore, which is 9.79 per cent of its exposure as on March 31, 2001.

Also, the gems and jewels industry has Rs 417 crore (5.52 per cent) worth holding in GTB, while the trading sector accounts for a 5.51 per cent (Rs 416 crore) share.

At its annual general meeting to be held on June 16 the bank has proposed a resolution to appoint R S Hugar as the chairman and managing director (CMD) for two years, and not three years as was publicised earlier, with retrospective effect from April 12, 2001.

It also proposes to re-appoint Ramesh Gelli as a director, whose term as CMD was completed on April 12. The bank has also mooted two special resolutions to those passed earlier for the proposed merger with UTI Bank.

The board has decided to make a request to IFC to invest up to $20 million in the Tier-II capital of the bank to improve its capital adequacy ratio, which stood at 12.71 per cent at the end of 2000-01.