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Written by:
John G
Date added:
July 2, 2017
Level:
University
Grade:
C
No of pages / words:
12 / 3358
Was viewed:
10132 times
Rating of current essay:
Essay content:
Headed by Managing Director Sudhakar Gande and Presidents Anand Anchan and G Laxminarayana, GTB was once touted to be one of India's best before it succumbed to staggering NPA.
Factors that led to the collapse of the bank
1. Increased exposure to the capital market
What really caused the downslide of GTB was its exposure to the capital market in 2000-01...
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Increased exposure to the capital market
What really caused the downslide of GTB was its exposure to the capital market in 2000-01. It had given loans of close to Rs.8.50 billion in 2000-01, which mostly were routed to the capital market. Of these loans, GTB recovered only around Rs.2.00 billion. Another reason for its overexposure to the capital market was the impact that the stock market fall left it with, reportedly Rs 11 billion of non-performing assets and a negative net worth ($ 237M, 197M euros)...
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