Global Trust Bank, a private bank promoted by 'Padmasree' Ramesh Gelli has collapsed. GTB, which predominantly has a strong presence in South India is currently under a moratorium with effect from July 24, 2004.
As soon as the news of the moratorium spread anxious people thronged GTB branches in
Bangalore and Hyderabad. Several branches have reported minor scuffles
between depositors and bank officials. Though, heavy security was in place
at almost all the branches, the tension was very much in the air.
Now, there are reports of a merger between GTB and Oriental Bank of Commerce
(OBC). The merger talk has been making rounds even as the Government and the
Reserve Bank of India are trying to resolve the crisis. According to
sources, CMD of OBC has expressed happiness on the proposed merger.
This section has been created especially to Indiainfo.com browsers to get a
deep insight of the GTB crisis as it may unfold which could throw up vital
questions on the proposed Privatisation of Banks.
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