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

ALL types of deposit accounts of Global Trust Bank (GTB) will be transferred to Oriental Bank of Commerce (OBC) as per the proposed amalgamation scheme announced by the RBI on Monday.

GTB depositors will receive the same rate of interest on their deposits as offered by OBC to its depositors.

According to the scheme, every savings bank account, current account or any other deposit account, including fixed deposit, cash certificate, monthly deposit, deposit payable at call or short notice with GTB, will be transferred to OBC on the prescribed date in the name of the respective account holders, crediting the full amount including interest to the extent payable under the scheme.

Under the scheme, all GTB employees shall continue in service and be deemed to have been appointed in OBC at the same remuneration and on the same terms and conditions of service applicable immediately before the close of business on July 24, 2004.

Employees of GTB who have intimated their intention to not be employees of OBC by notice in writing at any time before the expiry of one month following the prescribed date, shall be entitled to compensation, under the provisions of the Industrial Disputes Act 1947 (14 of 1947) and pension, gratuity, provident fund and other retirement benefits as may be ordinarily admissible under the rules or authorisations of the bank as in force immediately before the close of business on July 24, 2004.

All assets and liabilities of GTB will be transferred to OBC after proper valuations are done. Investments other than Government securities will be valued at market rates.

On the commencement of the scheme for amalgamation, the entire amount of the paid-up capital and reserves of GTB shall be treated as provision for bad and doubtful debts and depreciation in other assets of OBC.

OBC will have to call upon every person who was, as on the prescribed date, registered as the holder of an ordinary share of the bank (or would have been entitled to be so registered) to pay within three months from such date or dates as may be specified, the uncalled amount remaining unpaid by him in respect of such share or shares and the calls in arrears, if any.

The bank shall take all available steps considering the circumstances of each case to demand and enforce the payment of the amounts due with interest at six per cent per annum for the period of the default.

OBC may appropriate the realisations effected by these means in the first instance towards expenses incurred for the recovery of such amount.

If any surplus remains after appropriation, the bank shall make payment or provision in respect of any contingent liability and with the prior approval of the Reserve Bank of India, in respect of any liability whether contingent or absolute, which was not assessed and has arisen or been discovered after the prescribed date.

If any surplus remains after the appropriation, the bank shall make payments pro-rata from amount if any available towards the amounts, if any, due to the accounts of the former shareholders of GTB, to the specified extent.

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