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IFC endorses GTB's management change

In a significant development, the International Finance Corporation, the private sector arm of the World Bank group and the second largest shareholder of the Global Trust Bank (GTB), on Monday endorsed the management changes in the GTB. In a statement it said IFC looked forward "with confidence to working with the new management team".

A close associate of GTB since its inception almost seven years ago, the Washington-based IFC provided around $8 million in Tier II capital to GTB in 2000 and committed to lend, for its own account, upto $20 million GTB'S clients.

The mission of IFC is to promote sustainable private sector investment in developing countries, which will "reduce poverty and improve people's lives."

R S Hugar, former chairman of the Corporation Bank, was appointed as chairman and managing director of the GTB on April 12 for a two-year term. Soon after the appointment Hugar, who took over from Ramesh Gelli, assured a clean up operation including organisational changes in the bank. He may also shift the corporate office of GTB to Bombay.

GTB is involved in controversies over price rigging, insider trading, links with stock broker Ketan Parikh and the yet to materialise merger with UTI bank.

UNI

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