The Hindu Business Line : GTB investors chalk out plan to protect interests

WITH barely six days left for the deadline of submitting objections and suggestions on the RBI drafted scheme for the merger of Global Trust Bank (GTB) with Oriental Bank of Commerce (OBC), the retail shareholders of GTB have started preparing an action plan for protecting their interests.

The small and retail shareholders of GTB, under the banner of the newly registered body - GTB Investors' Association - gathered in good numbers here on Sunday to chalk out the details on a multi-pronged strategy aimed at securing reasonable rewards for their equity holdings in the bank.

Acknowledging the statutory powers conferred onto the draft scheme that prevented everybody from challenging the merger process, the GTB shareholders have decided not to question the merger but to strongly consider moving the Courts seeking adequate compensation to them as stakeholders of the bank.

A proposal was also approved for approaching the leaders of the Left parties to fight for their cause.

A section of the shareholders wanted to know from the regulators the fate of their GTB shares pledged with several banks towards raising loans.

Most of the investors stressed on the point of convincing the regulatory authorities of taking into account the significant `intangible value' and `inherent strengths' possessed by GTB so that a reasonable swap ratio could be worked out.

The GTB investors were unanimously of the view that it would be `peanuts' for OBC to compensate GTB shareholders since the public sector bank had agreed to repay Rs 6,500 crore of depositor's money. Of the Rs 120-crore paid-up equity of GTB, the small and retail shareholders were estimated to hold a stake of around Rs 75 crore.

Resolving to submit a detailed memorandum to the RBI, Government and leaders of the Left parties, and to move the Courts for ensuring swap ratio in the merger, the GTB small investors meet has elected a `core group' to chalk out the detailed action plan in view of the paucity of time in conducting general meetings of the Association before August 7.

More Stories on : Mergers & Acquisitions | Private Banks | Investor Protection

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