Core subject : Financial Accounting

Evolution Liberalisation Structure of the organised banking sector in India

GTB was the outcome of liberalization polices One of the first Private sector banks in India First branch in Secunderabad (Andhra Pradesh) on October 30, 1994

Promoter and founder :- former Vysya Bank Chairman Mr Ramesh Gelli, a Padmashree awardee, and his associates

* Promoter 1993-94 October 1994 October 1994 Equity capital Deposits Advances Net loss Market capitalization Gross NPAs

Ramesh Gelli GTB gets private bank license, unveils IPO Manmohan Singh inaugurates operations Commencement of operations Rs. 121 crores Rs. 6920 crores Rs. 3276 crores Rs. 272 crores Rs. 319 crores Rs. 915 crores

Data as on 31st march, 2003

GTB Ramesh Gelli (Promoter )

Ketan Parekh

1999-2000 January 2001 April 2001 June-July 2001 June 2002

Links with Ketan Parekh GTB proposes merger with UTI Bank Deal called off after RBI steps in, Gelli ousted as CMD Gelli quits Board, JPC calls for probe. RBI gives clean chit on GTBs liquidity

February 2003 2003-04 July 2004

July 24, 2004

RBIs assessment - negative net worth of GTB Banks net worth eroded further RBI rejects Newbridge Capital Infusion Plan Government notifies 3month moratorium &8.5 lac customers & depositors rush to the ATMS.

clear synergy between the two banks in terms of geographical network benefit in terms of technology OBC would get Income Tax exemptions benefit to OBC in terms of ATM network

Rs. 915 crores Gross NPAs in addition to impaired assets of Rs. 300 crores from GTB.
Capital Adequacy Ratio of OBC

OBCs asset quality

New age private sector bank with that of an old public sector

REGULATORY CHECK ON PRIVATE SECTOR BANKS RBI SHOULD APPROVE LICENSE TO MONTARY STRONG CORPORATES AND PIVATE BANKS RBI SHOULD LAUNCH A COMMITTEE STRICT ACTION SHOULD BE TAKEN CHALLENGE TO THE ETHICAL AND CORPORATE GOVERNANCE ISSUE IN INDIAN BANKING SYSTEM AUDITORS SHOULD PROJECT THE CORRECT HEALTH OF THE BANK.

LAVINA NACHLANI MAHESH PUNJABI DINESH RAMRAKHYANI HEENA SACHDEV LEENA AJWANI HITESH WADHWANI

68 83 90 91

112