Financial Daily from THE HINDU group of publications
Wednesday, Apr 13, 2005
Financial Daily from THE HINDU group of publications Wednesday, Apr 13, 2005 |
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Money & Banking
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Non-Performing Assets OBC recovers part of Global Trust NPAs Our Bureau
Mr B.D.Narang (right), Chairman & Managing Director, Oriental Bank of Commerce, with Mr Subrata Mukherji, MD, ICICI Securities Ltd, at a press conference in Mumbai on Tuesday. - - Paul Noronha
Mumbai , April 12 ORIENTAL Bank of Commerce Ltd (OBC) has made cash recoveries of Rs 200 crore from the bad loans of the erstwhile Global Trust Bank (GTB). OBC had inherited bad loans worth Rs 1,225 crore from its amalgamation with GTB last year. The bank has also initiated criminal action on 30 such accounts for an amount involving Rs 980 crore, Mr B.D. Narang, Chairman and Managing Director, OBC, said at a press conference here on Tuesday. He said civil action suits had been initiated on some accounts, where the amount involved is Rs 57 crore and Rs 445 crore had been recovered through compromise settlements. The bank has also upgraded accounts to the tune of Rs 57 crore, he added. Mr Narang said the amalgamation between OBC and GTB would be completed by June 2005. "We have virtually sorted out all issues pertaining to liabilities. Now, we are taking up the issues related to the integration of staff and rationalisation of branches," he said. Mr Narang said that the National Institute of Bank Management has submitted a report on the integration of GTB employees and it would soon take a view on this issue. On the bank's global expansion plans, Mr Narang said that OBC was looking at foraying into Malaysia, along with a couple of other nationalised banks. " There are a lot of remittances that come to India from Malaysia, so we thought it is a good time to make a foray in that country," he said. According to senior officials of OBC, the bank is in talks with Bank of Baroda and Bank of Maharashtra for this joint venture. OBC is also looking at setting up representative offices in Dubai and South Africa. On the performance for the financial year ended 2005, Mr Narang said that the bank had witnessed a credit growth of 35 per cent this fiscal. Excluding GTB's contribution, the growth was 16 per cent. Deposits, excluding GTB deposits, grew by 20 per cent. Public issue: OBC's public issue of 5.8 crore equity shares of Rs 10 each will open on April 25 and close on April 29. The offer will be made through the book building process. The price-band will be decided on April 23. "The offering will not only help us meet Basel II standards, but also help undertake growth opportunities that the banking sector is offering due to encouraging economic growth," said Mr Narang. Citigroup Global Markets India Pvt Ltd, DSP Merril Lynch Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd and Bajaj Capital Ltd are the book-running lead managers to the issue. The shares are proposed to be listed on the NSE and the BSE.
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