According to Business Standard, Global Trust Bank(GTB) has raised Rs. 1.5 bn rupees by way of private placement of funds to institutions and mutual funds.
GTB is a leading private sector bank that is fully computerised and is making forays into Internet banking and credit cards. It has 75 ATMís all over the country.
As a result of the private placement, the bankís net worth is to increase from Rs. 3.6 bn million to Rs. 5.1 bn.
The International Finance Corporation that has a 11% stake in the equity has taken up equity worth Rs. 217 million.
The increase in net worth makes the bank eligible to foray into the insurance sector, where the minimum net worth is Rs. 5 bn.
The insurance sector has been thrown open to private players under the new liberalised insurance policy by the government.
The recent investment in the bankís equities is a vindication of the trust in the bank by mutual funds and institutions on account of the consistent growth in net profits over the last few years and prudent lending policies which have seen itís net non-performing assets to be just 2.15%.
The inflow of funds will also enable the bank to improve itís capital adequacy ratio,
Open new branches, launch Internet Banking, introduce credit cards and increase lending.
This will also enable GTB to catch up with itís competitors ICICI Bank and HDFC Bank that have already launched Internet Banking and credit cards.