Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (10183)	12/21/1999 4:06:00 PM
From: Mohan Marette	Respond to of 12475

Allianz to take 20 per cent stake in Global Trust Bank globaltrustbank.com (Wednesday, December 22, 1999) Pradeep Raje in Mumbai -bs Allianz, Europe?s leading financial services group, is set to pick up a 20 per cent stake in Global Trust Bank (GTB) at a price of Rs 150 per share. GTB will make a fresh issue of capital, which will increase its net worth by Rs 300 crore. The deal is to be signed in January. According to sources familiar with the negotiations, chairman Ramesh Gelli will retain his post, while Allianz will nominate the vice-chairman and managing director of the Secundrabad-based bank. Asked about the deal, Gelli said, ?We have requested the IFC to look for a strategic partner which is strong in technology, retail banking and other financial products.? ?Nothing has been finalised yet,? he said. It is learnt that the bank has set an internal target of Rs 150 per share and the 20 per cent expansion in equity wil be done in two phases of 10 per cent each. The GTB scrip closed at Rs 72 on the Bombay Stock Exchange yesterday. Earlier this month, Hambrecht & Quist (H&Q) of the US and TA Enterprises (TAE) of Malaysia slod their stake in GTB in the open market. Each held 9.62 per cent in the bank. The bank has been looking for a foreign partner to help in its retail push and expand product profile. Allianz is one of the largest financial services groups in the world. Last year, it was ranked 23rd in the Fortune 500 rankings, with revenues of $64.87 billion. Currently, IFC and the Asian Development Bank (ADB) together hold 19.8 per cent of the bank?s Rs 104 crore equity base. According to the Reserve Bank of India regulations, foreign investors cannot hold more than 20 per cent in a bank. But this does not include the stakes of multilateral funding agencies like IFC and ADB. After the fresh issue of capital, Allianz?s stake will be reduced to exactly 19.2 per cent. As of March, GTB reported a tier-I capital adequacy ratio of 7.64 per cent and a capital adequacy ratio of 11.97 per cent. The bank reported a net profit of Rs 70.86 crore in 1998-99 on a total income of Rs 637.68 crore. For the half year ending September 30, net profit increased 43.63 per cent to Rs 45.36 crore. Interest income from operations rose 19.5 per cent from Rs 232.80 crore to Rs 278.29 crore while interest expenditure rose 12.7 per cent from Rs 214.36 crore to Rs 241.59 crore. Total income rose 25 per cent from Rs 298.20 crore to Rs 372.90 crore. Total deposits rose by 18.29 per cent from Rs 3889.20 crore to Rs 4600.68 crore and total advances rose by 37.23 per cent from Rs 1826.21 crore to Rs 2506.17 crore.