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July 27, 2001
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Money > Business Headlines > Report July 27, 2001 |
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GTB cuts exposure to Ketan Parekh firms by Rs 500 millionGeorge Smith Alexander The Global Trust Bank has sold collateral of around Rs 500 billion in the last three months in order to pare its exposure to the Ketan Parekh group. GTB's total exposure to the group is, at present, around Rs 2.07 billion. The bank has also approached the Bombay Stock Exchange for taking over a Rs 280 million deposit of Ketan Parekh which is in the joint names of the bank and the BSE. GTB's funded exposure to the KP group is pegged at Rs 1.81 billion, while the non-fund exposure, which is in the form of guarantees, is Rs 260 million. A part of the guarantees of around Rs 110 million will expire in August, while the balance would expire by December, sources said. The bank had a funded exposure of Rs 2.22 billion to the KP group in May. It sold collateral of around Rs 500 million to recover the interest and part of the loans due from the group. Additionally the bank has also received a payment of around 10 million. GTB had sold off collateral of around Rs 330 million of the Ketan Parekh group in April and May. The gap between the collateral given and the loan taken by the group, however, continues to be around Rs 400 million, the same position as in May. "The liquid shares were sold off in order to cut down the loans due to us. The bank had already provided Rs 500 million for the capital market exposure. The bank will be making additional provisions as and when required," said the official. The bank's present market exposure including fund and non-fund based exposure is pegged around 22.74 per cent or Rs 7.96 billion. Its exposure to broking companies is around Rs 5.30 billion, to investment companies at Rs 1.26 billion and investments in stock market was at Rs 1.40 billion. The exposure of the bank on May 31 2001, however, was at 19.4 per cent. The bank's investment in equity at that period was lower at Rs 770 million. The bank has collaterals of around 31 scrips, mostly new economy scrips such as HFCL, Mascon Global, Zee, DSQ Software, Shonkh Technology. Powered by YOU MAY ALSO WANT TO READ:
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