MEDIA ARTICLES ON GLOBAL TRUST BANK

Happy days for GTB defaulters are over - Sify.com

2004-11-02T06:05:00.000-08:00

Happy days for GTB defaulters are over - Sify.com

2004-11-02T06:03:00.000-08:00

Happy days for GTB defaulters are over - Sify.com

OBC protest high wages to ex-GTB staff - Sify.com

2004-11-02T06:02:00.000-08:00

OBC protest high wages to ex-GTB staff - Sify.com

OBC planning asset recovery company- The Times of India

2004-11-02T05:53:00.000-08:00

OBC planning asset recovery company- The Times of India

OBC planning asset reconstruction company

Archive A run for the bank

2004-09-20T04:09:00.000-07:00

Archive

THE REFORMS BANK

A run for your bank

There must be a banking regulator which is able to predict risks for a bank and liquidate a weak bank while it is still solvent.

The Financial Express

2004-09-20T03:51:00.000-07:00

The Financial Express

search results on GTB

It�s Time To Take Cover, India Inc

2004-09-20T03:48:00.000-07:00

It�s Time To Take Cover, India Inc

Big companies like ICICI Bank, VSNL, BPL, HDFC Bank, L&T, Tata Chemical, TCS, Infosys have already taken huge D&O covers for various reasons. Also, the collapse of Global Trust Bank is creating new imperatives for the other private sector financial institutions to buy liability products, says an industry observer.

The Asian Age - News Worldwide

2004-08-18T19:31:00.000-07:00

The Asian Age - News Worldwide

New Delhi, Aug. 18: The Union finance ministry has denied the charges levelled by BJP Rajya Sabha MP Balbir K. Punj against Prime Minister Manmohan Singh and former Prime Minister P.V. Narasimha Rao in the Global Trust Bank case.

"Government have noted, with considerable disappointment and regret, that in an article by Balbir K. Punj veiled insinuations have been made against the Prime Minister Manmohan Singh and the former Prime Minister P. V. Narasimha Rao in the matter concerning Global Trust Bank (GTB). It is obvious that Mr Punj is willing to strike but afraid to wound, and that is why he has stopped just short of making accusations," said the statement issued by the ministry on Wednesday.

It said, "Nevertheless, the references to the Prime Minister and the former Prime Minister deserve to be deplored."

According to the statement, the GTB has been sliding since March 2001 till date of merger. If, as the author alleges, the GTB has burnt a hole of Rs 800 crores-Rs 1,200 crores, the hole was burning since March 2001. Shortly after the UPA government took over, the finance minister discussed the matter with the RBI governor and asked him to take suitable steps to protect the interest of the stakeholders, especially the depositors.

The RBI acted promptly and, after conducting its own enquiries, advised the government to impose a moratorium on the activities of the GTB, and this was done with effect from July 24. On July 26, a draft scheme proposing the merger of GTB with Oriental Bank of Commerce was proposed and a notice inviting objections was published. Within three weeks, the objections were processed, and a final order directing the amalgamation of GTB with OBC was made on August 14, the statement said.

It added that the depositors have welcomed the swiftness and promptitude with which the government and the RBI have acted in the matter. These decisions were taken at the level of the finance minister and the governor, RBI. The Prime Minister’s approval was taken for the publication of the notification with effect from August 14, 2004, it added.

filing of objections to RBI- in regard to amalgamation of GTB

2004-08-18T19:06:00.000-07:00

ASIAN AGE August 6, 2004

RBI lauded GTB’s 02-03 accounts
- By Our Special Correspondent

Mumbai, Aug. 5: Former CBI official and IPS officer Yogendra Pratap Singh has sent his
objections to the proposed amalgamation of the Global Trust Bank with the Oriental
Bank of Commerce. Objection have to be filed by August 7 to the RBI.

Mr Singh in his objection mentioned why the amalgamation is violative of several
sections of the Banking regulations Act.

Some of the objections raised are:
1) The amalgamation has to be considered after a moratorium as per section 45. But in
this case it was all done prior to the announcement, which was just a formality.

2) OBC has voluntarily agreed to the amalgamation so it should have take the approval
of two-thirds of the majority shareholders as required under section 44 of BRA.

3) Deposit insurance claim under the Deposit Insurance Corporation does not provide
for staking that claim to set off the loss to equity shareholders.

4) OBC has been guilty of violation of section 12A of the Securities and Exchange
Regulation Board of India. They have taken the entire equity on the basis of non
public information.

5) Under the Sebi takeover regulations for a bailout/merger you require at least three
offers. There should have been open offers so that shareholders get the best terms.

6) There should be accountability of the regulator.

7) RBI is meant to protect depositors and Sebi the investors, but RBI did not act in
conjunction with the Sebi.

8) There should be a CBI enquiry against the RBI officials concerned for their
collusion with GTB.

Mr Singh pointed out that the RBI took the unusual step of issuing a press release on
September 30, 2003 saying that the RBI welcomes cleaning up of the balance sheet
(2002-03) of Global Trust Bank Ltd.

He further said that,“The present management had made special efforts in the recovery
of non-performing assets relating to the previous years and have also made necessary
provisions in accordance with the Reserve Bank guidelines.

The Reserve Bank of India has noted that even though the financial statements show an
overall loss, the bank has made an operating profit for the year 2002-03.”
Then 11 months later it decides to freeze the GTB’s accounts and amalgamate the bank
with OBC because it fudged the previous year’s balance sheet.

BS Online News GTB FINANCIAL RESULTS AUGUST 9

2004-08-09T10:14:00.000-07:00

BS Online News

Star Of Mysore Online BANKING IN BLUDERLAND 6TH AUGUST

2004-08-09T10:03:00.000-07:00

Star Of Mysore Online

Banking in Blunderland

Now that the Global Trust Bank (GTB) has failed, what next ? asked my friend and colleague, when we met during the lunch break.

'Why should we worry about it ? I am not a customer of GTB. Neither are you,'

'Yet, to think that one million depositors of the Bank are facing a grave risk of loss...'

'No fears ! Don't you know that nothing is lost when a candle burns?'

'Don't try to philosophise the incident. Today it is GTB. Tomorrow it may be another. It may be your bank, my bank or our bank ! Who knows ?'

Risk-ridden world

'No one knows. In this highly risk-ridden world anything is possible. Suddenly a vein in the body may snap and the person may collapse, thus bringing a sudden end to all the achievements of the individual ! What a tragedy, as Dr. K.M. Panikkar once said. His own end was no different.'

'Again don't philosophise. You are in a very pensive mood today. You are also affected by the incident, though you refuse to admit it.'

'Forget it. Let us enjoy the cup of coffee. Tomorrow ! Why, tomorrow we may be with seven thousand yesterdays, as Omar Khayyam says. Think of yesterdays. How many banks have failed, not only in the distant past, even recently. History repeats itself, not in circles but in spirals; every time a bank fails the consequences appear to be more serious than in the past, with increasing complexity and gianticity of the situation. Along with it, the regulating mechanism also is being perfected. Yet the malaise continues'.

'You said that history repeats itself. You also spoke of the remote past and recent past. Would you explain ?'

'But remember that during the lunch break or coffee break, whatever it may be, we have to refresh ourselves after half-a-day's hard work. Why worry about all these ?'

'But you have aroused my curiosity by saying so many things not found in the papers. Don't you think that when our government embraced a policy of liberalisation and initiated economic reforms, it opened the banking sector to more private banks. Private sector banks were deem-ed to compete successfully with nationalised banks and usher in a new era of efficiency.'

'In the distant past, before we got our freedom, there were many banks in the private sector. But just as our country is known for a large percentage of infantile mortality, history of our banks is the history of failures. We have brought back the private sector after tinkering with nationalisation and realising that the public sector is the breeding ground of many unhealthy practices. But with the revival of private sector banks, the long-forgotten ills have once again come to the forefront. We don't seem to have learnt much from history'.

'How do you say so? We are told that post-nationalisation banking scene is much better. Fresh wind is blowing. Public sector banks also are given much freedom. Old statutory restrictions are relaxed. Compulsory investment in government securities, priority sector lending, lending a helping hand to sick industries, etc., are no longer strictly obligatory. Loan melas are long being forgotten.'

Unrealisable debts

'The Narasimham Committee Reports on reforms in the banking sector are being implemented. There is consolidation. A number of modern private banks are competing with the public sector banks. New products and electronic banking are being introduced. The accumulation of non-performing assets is being prevented. Provisioning for unrealisable debts and the introduction of capital alequacy norms have made banks stronger and there is a feeling of confidence among the bankers'.

'No doubt there are many plus points. Productivity, profitability, resilience and concern for the consumer are the sine qua non of banking. All these are good. But look at the structure and ownership of some of the modern private sector banks. For example, the Global Trust Bank.

Professional running

Today banking is a very highly specialised sector. It is harmful if a large chunk of the capital of the bank were to be in the hands of a single person or a few persons. Diversification of ownership and professional running are essential. If a single shareholder has a dominant role, it is dangerous. Even in western countries there is diversification and professionalism. This norm was forgotten while granting bank licences. Personal interest or the interest of one's own business should not get precedence.

Nascent capitalists

In the days of British rule, particularly after the American Civil War, when Indian cotton exporters had a heyday, capital came to be accumulated in a few hands. The nascent capitalists started a number of industries, banks and insurance companies.

Banks and insurance companies had to feed their industries with finance. There was interlocking of directorates. The result was disaster. There was infantile mortality on a large scale. The nationa-lisation of major banks undid this tendency. But it created fresh problems.

Liberalisation was an antidote to the evils of public ownership. But care was not taken to see that the old disease did not recur. Micro-banking is not the answer to macro-banking. The Global Trust Bank, started in the year 1992, has been ailing almost from its inception.

Instead of piling up profits, the Bank piled up non-performing assets. The auditors drew the attention of the management to the several irregularities. The Reserve Bank also noticed that all was not well. It asked the Bank to honour capital adequacy norms. It had to raise its owned capital to a minimum of 8 per cent of the net weighted assets. The management did not heed the advice. The RBI had to ask the Bank to suspend operations. It had to be done immediately to avoid flight of resources. It appears that some people had already got scent of it and had begun to withdraw funds.

'So you think that the people have lost faith in private sector banking ?'

'I don't think so. There are weak banks in the public sector also. But they have the support of the government. The government came to the rescue of UTI and IBRD. GTB is now tagged on to OBC —Oriental Bank of Commerce. Public or private, there are only strong banks, large banks and other banks. So the drama goes on. Now, let us go back to work.

The Hindu Business Line : Moral hazard explained ON GTB

2004-08-09T09:57:00.000-07:00

The Hindu Business Line : Moral hazard explained: "The proposed acquisition by OBC will ensure that GTB depositors will get their money in full. Experts claim that protecting GTB depositors sends wrong signals to other banks. Why?
This decision may lead other banks to think that they will be bailed out too if their loans turn bad. So, they may actively seek high-risk clients. After all, such clients pay higher interest rate. That is the moral hazard experts are talking about"

When the bank goes bankrupt... - The Times of India 8TH AUGUST ON GTB

2004-08-09T09:54:00.000-07:00

When the bank goes bankrupt... - The Times of India

How bankable is a bank? - The Economic Times 8TH AUGUST

2004-08-09T09:53:00.000-07:00

How bankable is a bank? - The Economic Times

White-Collar Crime Victims and the Issue of Trust: Spalek

2004-08-03T09:22:00.000-07:00

White-Collar Crime Victims and the Issue of Trust: Spalek

GENERAL ARTICLE ON ISSUE OF TRUST

THE QUEEN IS EXPOSED BEHIND US BANKING SYSTEM

2004-08-03T09:11:00.000-07:00

THE QUEEN IS EXPOSED BEHIND US BANKING SYSTEM

not connected with gtb

lessons to be learnt

-Frauds Art

2004-08-03T09:02:00.000-07:00

Frauds Art

not connected to GTB

�Bank Failures, Systemic Risk, and Bank Regulation� general articles

2004-08-03T09:00:00.000-07:00

�Bank Failures, Systemic Risk, and Bank Regulation�

The artilcle is not connected to GTB at all

The Asian Age - News Worldwide 2nd August 2004 by Olga Tellis

2004-08-02T17:33:00.000-07:00

The Asian Age - News Worldwide

RBI gets brickbats for delayed action on GTB

www.ahmedabad.com - RBI fiat to 165 banks ruffles investors

2004-08-02T16:52:00.000-07:00

www.ahmedabad.com - RBI fiat to 165 banks ruffles investors

Global Trust Burst : OutLookIndia.com DATED AUGUST 9 2004

2004-08-02T13:01:00.000-07:00

Global Trust Burst : OutLookIndia.com

Mere Fraud or Outright Dacoity ? JULY 2001

2004-08-02T12:56:00.000-07:00

Mere Fraud or Outright Dacoity ?

GTB flouted rulebook from A to Zee - The Times of India August 2 2004

2004-08-02T12:29:00.000-07:00

GTB flouted rulebook from A to Zee - The Times of India

Banking & Finance BANKS AND SHARE MARKETS AUGUST 2 2004

2004-08-02T12:25:00.000-07:00

Banking & Finance

Banking & Finance GTB'S EQUITY

2004-08-02T12:22:00.000-07:00

Banking & Finance

Sebi says no to Gelli, Ketan january 1 2003

2004-08-02T12:17:00.000-07:00

Sebi says no to Gelli, Ketan

Making Banks Globally Trustworthy 27 JUly 2004

2004-08-02T12:13:00.000-07:00

Making Banks Globally Trustworthy

Global Trust Bank gets 2 new partners - The Times of India june 29 2004

2004-08-02T09:54:00.000-07:00

Global Trust Bank gets 2 new partners - The Times of India

New Bridge to infuse $200 m for 40% in GTB - The Times of India 13 july 2004

2004-08-02T09:52:00.000-07:00

New Bridge to infuse $200 m for 40% in GTB - The Times of India

Auditor had blown whistle on GTB in '02-'03 - The Times of India 26 july 2004

2004-08-02T09:48:00.000-07:00

Auditor had blown whistle on GTB in '02-'03 - The Times of India

GTB adds to the muddle created by co-op banks - The Times of India 27 july 2004

2004-08-02T09:46:00.000-07:00

GTB adds to the muddle created by co-op banks - The Times of India

Eight teams to effect OBC-GTB merger - The Times of India 27 july 2004

2004-08-02T09:44:00.000-07:00

Eight teams to effect OBC-GTB merger - The Times of India

Merge Madhavpura Bank with stronger bank - The Times of India 28 july 2004

2004-08-02T09:40:00.000-07:00

Merge Madhavpura Bank with stronger bank - The Times of India

Unbankable Option - The Times of India -letter to editor

2004-08-02T09:36:00.000-07:00

Unbankable Option - The Times of India

Merger option not extended to Prudential, Vasavi - The Times of India 29july 04

2004-08-02T09:35:00.000-07:00

Merger option not extended to Prudential, Vasavi - The Times of India

GTB: It wasn't Gelli, to start with - The Times of India 29 july 2004

2004-08-02T09:33:00.000-07:00

GTB: It wasn't Gelli, to start with - The Times of India

Probe finds unholy nexus between GTB, Ketan Parekh - The Times of India 31 july 2004

2004-08-02T09:31:00.000-07:00

Probe finds unholy nexus between GTB, Ketan Parekh - The Times of India

Banks look for cure in mergers, markets go up - The Times of India august 2,2004

2004-08-02T09:20:00.000-07:00

Banks look for cure in mergers, markets go up - The Times of India

The Hindu Business Line : GTB moratorium: What it means for bank's customers

2004-08-02T09:15:00.000-07:00

The Hindu Business Line : GTB moratorium: What it means for bank's customers

august 1,2004 article

rediff.com: Money channel - The Global Trust Bank Crisis various articles

2004-08-02T09:11:00.000-07:00

rediff.com: Money channel - The Global Trust Bank Crisis

Is RBI responsible for GTB crisis? dated august 2 2004

2004-08-02T09:10:00.001-07:00

Is RBI responsible for GTB crisis?

Is RBI responsible for GTB crisis? dated august 2 2004

2004-08-02T09:10:00.000-07:00

Is RBI responsible for GTB crisis?

Heroism Project | 1970s | Woodward & Bernstein journalists of water gate scandal

2004-07-29T03:35:00.000-07:00

Heroism Project | 1970s | Woodward & Bernstein

washingtonpost.com - Redirect on water gate scandal investigation

2004-07-29T03:32:00.000-07:00

washingtonpost.com - Redirect

Many have watched a movie called All teh President's men played by dustin hoffman and robert redford.
Dustin played Carl bernstein and Redford played woodword both washington post investigators .
By simple questioning as reporters- they uneartherd water gate scandal

What Was Watergate? dated 29 7 2004

2004-07-29T02:56:00.000-07:00

What Was Watergate?

Watergate" is now an all-encompassing term used to refer to:

political burglary
bribery
extortion
phonetapping
conspiracy
obstruction of justice
destruction of evidence
tax fraud
illegal use of government agencies such as the CIA and the FBI
illegal campaign contributions
use of public money for private purposes.

Should you Bank on Mergers? 11 february 2001

2004-07-29T02:13:00.000-07:00

Should you Bank on Mergers?

domain-B : Indian business : finance : banks : A crisis tale and two banks: Global Trust Bank, ICICI Bank

2004-07-29T02:11:00.000-07:00

domain-B : Indian business : finance : banks : A crisis tale and two banks: Global Trust Bank, ICICI Bank15 april 2003

GTB founder surprised by moratorium - Sify.com 26 july 2004

2004-07-29T02:05:00.000-07:00

GTB founder surprised by moratorium - Sify.com

GTB-OBC merger to take a minimum of 6 weeks - Newindpress.com 29 july 2004

2004-07-29T02:01:00.000-07:00

GTB-OBC merger to take a minimum of 6 weeks - Newindpress.com

OBC will have to tackle Rs 1,250 crore worth non-performing assets - Newindpress.com 29 july 2004

2004-07-29T02:00:00.000-07:00

OBC will have to tackle Rs 1,250 crore worth non-performing assets - Newindpress.com

'RBI should have taken action against GTB earlier' - Newindpress.com 28 july 2004

2004-07-29T01:59:00.000-07:00

'RBI should have taken action against GTB earlier' - Newindpress.com

'GTB was virtually offered free to OBC' - Newindpress.com 28 july 2004

2004-07-29T01:58:00.000-07:00

'GTB was virtually offered free to OBC' - Newindpress.com: "Kirit Somaiya, President of Investors Grievances Forum says the Global Trust Bank was a timebomb for the last five years which the banking regulator, the Reserve Bank of India failed to defuse."

Banking & Finance 28 JUly 2004 A clarifiation -Global Trust bank

2004-07-29T01:53:00.000-07:00

Banking & Finance

Banking & Finance 28 july 2004

2004-07-29T01:52:00.000-07:00

Banking & Finance gtb big clients seek alternate arrangement

Banking & Finance 29 july

2004-07-29T01:50:00.000-07:00

Banking & Finance OIL firms myll over future of GTB ATM's at retail pumps

Banking & Finance 29 july 2004

2004-07-29T01:47:00.001-07:00

Banking & Finance

Life & Leisure on ramesh gelli of globalt rust bank on 27 july

2004-07-29T01:47:00.000-07:00

Life & Leisure

ramesh gelli states that violation of sanctions and disbursement procedures and faulty loan appraisal system which caused problems

The Telegraph - Calcutta : Business 28th july 2004

2004-07-29T01:42:00.000-07:00

The Telegraph - Calcutta : Business

Business News India Channel : Latest Business News & Current Affairs of India, updated hourly by "new kerala.com"

2004-07-29T01:41:00.000-07:00

Business News India Channel : Latest Business News & Current Affairs of India, updated hourly by "new kerala.com" 26th july

GTB, Small Caps Under Sebi Lens 29 july

2004-07-29T01:39:00.000-07:00

GTB, Small Caps Under Sebi Lens

Review On Global Trust Bank by ketantendulkar -- MouthShut.com december 2003

2004-07-29T01:37:00.000-07:00

Review On Global Trust Bank by ketantendulkar -- MouthShut.com

DOes royal treatment is used to entice depostiors!!!! Can such royal treatment by other banks trap you too.

Global Trust Bank Loses Its Middle Name 25 july

2004-07-29T01:31:00.000-07:00

Global Trust Bank Loses Its Middle Name

The Hindu Business Line : Oriental Bank sees Rs 800-cr gap on merger 28th july 2004

2004-07-29T01:28:00.000-07:00

The Hindu Business Line : Oriental Bank sees Rs 800-cr gap on merger

The Hindu Business Line : Who is buying GTB stock? 28 july 2004

2004-07-29T01:27:00.000-07:00

The Hindu Business Line : Who is buying GTB stock?

The Hindu Business Line : Proportion of bad loans to advances is the key

2004-07-29T01:26:00.000-07:00

The Hindu Business Line : Proportion of bad loans to advances is the key dated 27 july 2004

The Hindu Business Line : Goldman Sachs exited GTB in April-June quarter 27 july 2004

2004-07-29T01:25:00.000-07:00

The Hindu Business Line : Goldman Sachs exited GTB in April-June quarter

The Hindu Business Line : Scheme of amalgamation � GTB accounts to be transferred to OBC

2004-07-29T01:24:00.000-07:00

The Hindu Business Line : Scheme of amalgamation � GTB accounts to be transferred to OBC dated 27 july

The Hindu Business Line : Panic is over for depositors, says OBC chief 27 july 2004

2004-07-29T01:23:00.000-07:00

The Hindu Business Line : Panic is over for depositors, says OBC chief

The Hindu Business Line : GTB to be merged with Oriental bank � No share swap arrangement; all employees to be retained

2004-07-29T01:22:00.000-07:00

The Hindu Business Line : GTB to be merged with Oriental bank � No share swap arrangement; all employees to be retained dated july 27,2004

The Hindu Business Line : RBI creates liquidity crisis for GTB customers 26 july 2004

2004-07-29T01:20:00.001-07:00

The Hindu Business Line : RBI creates liquidity crisis for GTB customers

The Hindu Business Line : GTB's inherent strengths outweigh its NPAs: Gande 26 july

2004-07-29T01:20:00.000-07:00

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

The Hindu Business Line : GTB clients fume at RBI's sudden move 26 JUly

2004-07-29T01:18:00.000-07:00

The Hindu Business Line : GTB clients fume at RBI's sudden move

The Hindu Business Line : A few urgent items for the accountants' agenda july 29 2004

2004-07-29T01:16:00.000-07:00

The Hindu Business Line : A few urgent items for the accountants' agenda

The Hindu Business Line : GTB failure unlikely to dent Indian banking system: Fitch dated july 29,2004

2004-07-29T01:14:00.000-07:00

The Hindu Business Line : GTB failure unlikely to dent Indian banking system: Fitch

The Hindu Business Line : ICAI to write to GTB auditors dated 28 july 2004

2004-07-29T01:11:00.000-07:00

The Hindu Business Line : ICAI to write to GTB auditors

www.presstrust.com - Global Trust Bank - bank's response

2004-07-29T00:57:00.000-07:00

www.presstrust.com - Global Trust Bank - bank's response

BBC NEWS | Business | Global Trust Bank forced to merge JULY 26 2004

2004-07-29T00:55:00.000-07:00

BBC NEWS | Business | Global Trust Bank forced to merge