Mumbai, Nov 10: Something is brewing on the Global Trust Bank (GTB) counter. GTB's scrip has perked up over the last couple of days on the bourses. On the Bombay Stock Exchange (BSE), the scrip went up to a high of Rs 100.05 (opening at 92.50) from Thursday's quote at around Rs 88. On the National Stock Exchange (NSE), the GTB scrip opened at Rs 91 on Friday and went up to Rs 100. The price has gone up by 3.62 per cent on the BSE and by 2.15 per cent on the NSE."There are strong rumours in the market of a leading foreign bank acquiring a some stake in GTB... the scrip has gone near to its 52-weeks high on the BSE at Rs 101.50 and at Rs 101.65 on the NSE," a broker said.
The rumour is that Citibank is picking up a stake in the bank. This rumour has gained currency ever after Robert E Rubin, chairman of the executive committee and member of the office of chairman of Citigroup said that the bank is keen on aquiring a local bank.
The point though is that no foreign bank can acquire more than 20 per cent in Indian bank - state-run or private-owned - under the prevailing regulatory system. They can at best also acquire only up to 15 per cent as after that the acquirer will perforce have to make an open offer for atleast 20 per cent more.
In recent times, quite a many foreign bank honchos have articulated their interest in buying out a local bank and that local regulations need to be amended to facilitate the same.
GTB has a capital base of Rs 121.3 crore. Deposits stood at Rs 6,190.85 crore with assets at Rs 7,531.22 crore at end-March 2000.
According to analysts, this rumour on the GTB counter cannot be ruled out as process of consolidation has already begun in banking sector particularly with private sector banks.
Times Bank merged with HDFC Bank a year ago initiating this process. ICICI Bank is toying with with the idea of reverse merger with the parent ICICI Ltd.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.