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Global Trust Bank is now Oriental Bank of Commerce

The Government of India has sanctioned the scheme for amalgamation of the Global Trust Bank Ltd. with the Oriental Bank of Commerce. The amalgamation will come into force on August 14, 2004. All the branches of Global Trust Bank Ltd. will function as branches of Oriental Bank of Commerce with effect from this date.

Customers/Depositors of GTB
Customers, including depositors of the Global Trust Bank Ltd., will be able to operate their accounts as customers of Oriental Bank of Commerce with effect from August 14, 2004. Oriental Bank of Commerce is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Global Trust Bank Ltd.

Shareholders of GTB
In accordance with the Scheme of Amalgamation if any surplus remains after meeting all the liabilities out of the realisation of assets of the Global Trust Bank Ltd., the shareholders may receive pro-rata payment.

As part of the merger proposal, the OBC would get Income Tax exemptions in transferring the assets of GTB in its book during the merger process, while all the bad debts of the merged entity would be adjusted against the cash balances and reserves of the Hyderabad-based bank.

OBC is confident of turning around the GTB within one year. According to OBC chairman B.D. Narang, GTB "suited it" because of synergies. While weakness of GTB has been bad assets, strength of OBC is recovery. Since the GTB is a south-based bank, it would give OBC the much-needed edge in the southern part of the country. Moreover, both the banks have a common core banking solution 'Finacle",which will help in the consolidation.



Amalgamation scheme of GTB with OBC ... Click here

Moratorium Notification of Reserve Bank of India ... Click here
Countdown to moratorium ... Click here
What is in store for customers? ... Click here
Clarifications from RBI ... Click here
Global Trust Bank (GTB)- Who is the loser? ... Click here

... HANDBOOK ON MERGERS IN BANKS








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