OBC chief says Global Trust merger by June '06

The integration process of Global Trust Bank (GTB) with Oriental Bank of Commerce (OBC) would be completed by June 2006. This was announced by B D Narang, chairman and managing director of OBC, today.

Narang said GTB was still making losses, which have been booked into the accounts of the acquirer bank. "In the last two quarters, GTB had posted losses of Rs 65 crore and Rs 10 crore, respectively," he said, adding the operations were likely to post a profit in the last quarter of the current fiscal.

Narang said GTB was expected to contribute Rs 350 crore to the profit and loss account of OBC in the next financial year.

Some of the steps taken for full integration with OBC were those of merging the balance sheets of the two entities at both the head office and branch levels, and addressing the staff issue by engaing the National Institute of Bank Management (NIBM).