The Hindu Business Line : GTB's inherent strengths outweigh its NPAs: Gande

EVEN after the day-long developments of the RBI imposing moratorium that caused panic among depositors across the country on Saturday, the Global Trust Bank (GTB) Managing Director, Mr Sudhakar Gande, remains optimistic.

"The bank still enjoys unperturbed strengths such as technology platform, multiple delivery channels network, retail and corporate customer base, internal systems and procedures and talented and dedicated workforce. These strengths ensure a strong future for the bank," Mr Gande said.

Doing a SWOT analysis of GTB while talking to Business Line here on Sunday evening, he said the bank has disbursed over Rs 1,500 crore in the last couple of years with just one per cent of non-performing assets (NPAs), which compares with any best bank in the country. "The bank has already achieved the critical mass and ensured scalable technology in place. We still have good scope for network expansion and capable of offering new products." Admitting that the bank suffers serious weaknesses such as higher NPAs and strained capital adequacy, he said, "The bank's inherent strengths still overweigh its NPAs and losses. While NPAs and losses are clearly reflected in the balance sheet, unfortunately, the franchisee value can not be reflected."

Stating that the current customer base of nearly one million was scalable to a level of at least three million over the next five years, Mr Gande said the bank can generate business volumes of at least Rs 4,000 crore with a capital infusion in the range of Rs 500 crore.

GTB currently has a delivery channel network of 104 branches and 275 ATMs in 34 cities across the country.

Equipped with a trained force of 1,300 plus employees, the bank has nearly one million customers.

The bank also has strong exposure to developed States of Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu with more than 70 per cent of branches in seven cities and four metros.

"It takes ages for a bank to build such a large quality customer base, which is well spread across the country. The quality and spread of our retail and corporate customer base is one of the best in the industry. We have put in place strong internal systems and procedures which will make sure that the problems of the past are not recurred," Mr Gande said.

"People, procedures and systems are ready to ensure a huge growth in business once necessary capital is induced. The existing infrastructure can support multi-fold growth in business with minimal investments. The bank is confident that its inherent strengths will definitely attract the prospective investors," Mr Sudhakar Gande said.

More Stories on : Private Banks | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Inc pays highest taxes in Third World

Collateral-free loan up to Rs 7.50 lakh for students: IBA

Higher borrowings loom large over bond market

GTB's inherent strengths outweigh its NPAs: Gande

RBI creates liquidity crisis for GTB customers

GTB clients fume at RBI's sudden move

Demat, locker operations allowed