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GTB to review exposure to markets: Hugar

Global Trust Bank's new chairman and managing director R S Hugar on Wednesday announced that the bank would make a 'few course corrections' including reduction of its exposure to capital markets.

Seeking to put the controversy surrounding the bank's alleged role in price rigging firmly behind him, Hugar said GTB would now review its exposure to capital markets and take steps to reduce it to a maximum of 5 per cent from the present 11 per cent.

Hugar took charge on April 12 on the exit of the founder CMD Ramesh Gelli following allegations of scrip rigging and market manipulation.

Addressing his first press conference after becoming CMD, Hugar spoke about his mission to improve bank's image, focus on micro-credit, upgradation of technology infrastructure and achieve new heights in terms of deposit growth.

Replying to questions, the new CMD admitted that GTB's exposure to capital markets 'appeared to be slightly aggressive and needed a review and appropriate course corrections' but hastened to add that there had been no violation of any exposure norms and directions.

He pegged the bank's total exposure to capital markets at Rs 3.75 billion including Rs 2.46 billion to Ketan Parekh group of companies.

"My immediate agenda will be consolidation process and advances of the bank is an important area where I will want to make a few course corrections. I want to bring down the exposure to capital markets to 3 to 5 per cent," he said.

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