Gtb Net Up 40% To Rs 80.13 Cr
The Global Trust Bank (GTB) has posted a net profit of Rs 80.13 crore during 1997-98 _ a 40 per cent increase over the previous year's Rs 57.40 crore.
Deposits grew 44 per cent at Rs 3,285 crore while the credit portfolio improved to Rs 1,756 crore from Rs 1,462 crore in the previous year _ a 20 per cent growth. The board has recommended an 18 per cent dividend for the year.
Releasing the results, GTB chairman and managing director, Ramesh Gelli, said the bank had performed "excellently" despite the overall performance of the economy in 1997-98 being quite subdued. The improved performance by the banking sector as a whole was due to the reforms and far-reaching policy decisions taken by the government during the year, Gelli said. Aggregate deposits and total flow of funds to commercial sector by scheduled commercial banks showed fine growths of 18.9 per cent and 17.6 per cent respectively.
Gelli hoped the reforms will lead to expansion in lendable resources of banks, greater operational freedom, a smooth credit delivery system, and will further integrate the foreign exchange, government securities and money markets.
The GTB chairman and managing director said the concrete steps taken to provide greater authority to banks in the management of their portfolio and clientele would force them to rectify their inefficiencies and facilitate growth.
Referring to the recently announced credit policy, Gelli said the immediate fall-out of the policy would be a readjustment of competition-equilibrium in the market where banks need to quickly identify their target segment and rework asset-liability management mechanisms.
"We in GTB are fully geared to capitalise on the emerging scenario. A competent management, supported by long-term strategies, close controls and strong IT support will prepare the bank for the future",. he said.
Gelli said the Global Trust Bank was awaiting government clearance for a further $5 million contribution by the International Finance Corporation (IFC) into the GTB equity. "I hope the investment board will clear the proposal in a couple of weeks", he said.
IFC has at present a 10 per cent stake in the Rs 104-crore equity of Global Trust Bank.