GTB collapse rumours send panic waves

Rumours about the collapse of India’s first private sector bank in—Global Trust Bank—triggered a panic-like situation in Hyderabad late on Wednesday resulting in the account holders rushing to ATM centres in the twin cities to withdraw cash to the maximum. GTB was, as a result, forced to come with an advertisement in local dailies saying that the financial health of the bank is stable and all deposits kept with it were safe. However, the panicky situation continued even on Thursday at ATM counters in the city.

The bank blamed some unscrupulous elements for spreading the rumours about the financial health of the bank. “We would like to categorically state that there is no truth whatsoever in these rumours and GTB’s financial position is absolutely sound,” GTB managing director Sudhakar Gande said.

When contacted, the spokesperson said that they are investigating the source of the rumour. “It was localised in Hyderabad and none of the other centres have been affected,” the official said. The bank stated that it has a deposit base of Rs 6,000 crore and Rs 2,000 crore has been invested in bonds and SLR and Rs 300 crore in cash reserves (CRR), which is in excess of norms prescribed by RBI.