Gtb Aims At 25% Deposit Growth

Despite a poor show in the first quarter, the Global Trust Bank (GTB) hopes to achieve a 25 per cent growth in deposits and a 15 per cent growth in advances by the end of the current fiscal.

As on June 30, 2001, the bank's deposits and advances stood at Rs 6,768 crore and Rs 3,440 crore, respectively, as against Rs 7,734 crore and 4,099 crore, respectively, at the end of the last fiscal.

A bank statement said the process of consolidation was under way. "Efforts are being made to aggressively improve on the retail deposit base. The segment tends to remain stable and, if nurtured well, it would help to reduce the cost of funds. Overall, plans are to increase the deposits by 25 per cent over the previous year," the statement said.

 

On the fall in advances in the first quarter of the fiscal, the bank said this was the result of a cautious approach towards increasing exposures, as well as need to exit from less remunerative relationships.

However, GTB is keen to increase its book size by spreading the risks evenly. It is looking for stable and consistent income and growth by improving asset quality.

Though it results in spreads getting squeezed, "the objective is to stay protected".

"In order to help the process, credit and market risk management systems are being further refined," R S Hugar, chairman and managing director of the bank, said.

On reducing non-performing assets (NPAs), he said, "NPA management and recoveries remain a priority. We shall ensure relentless action until it leads to recovery and a better portfolio of advances. Effective steps are taken to prevent downgrading of assets and their early resolution."