The International Finance Corporation, Washington, has sold 31,73,016 shares (2.61%) of Global Trust Bank in the market during August 13 to 22.

With this, IFC's stake in GTB has come down to 7.77 per cent from that of 10.38 per cent as on June 30, 2003.

The sale of shares by IFC, which is associated with the bank since its inception as a stakeholder, do not seem to have any impact on the price of the scrip, as it continues to quote around Rs 25 during after the sale period. Sources in GTB says that IFC's offloading is nothing to do with the performance or fund raising exercise of the bank.

However, IFC, which was holding about 12.40 per cent stake in GTB prior to December 2000, sold around 26 lakh (2.6 million) equity shares at around Rs 100 per share in January 2001, when GTB's share price was at its peak.

It was even figured in JPC report on stock market scam. The latest sale by IFC could be with a view to bring down the average holding cost of GTB shares.

According to sources, GTB's plans to raise additional capital to improve the capital adequacy ratio will be firmed up once the bank declares its financial results for the fiscal 2002-03 before the end of September 30 deadline, the three-month extension given by the Reserve Bank. For the nine-month period ended December 2002, the bank recorded a net profit of Rs 28.20 crore (Rs 282 million) on a total income of Rs 592 crore (Rs 5.92 billion).

Sources at GTB said the bank has achieved a significant progress in the recovery of non-performing assets in the recent past.

The overall recovery from the NPA and other critical accounts in the last 12 months is estimated to be about Rs 300 crore (Rs 3 billion).

"This will significantly help us in finalising the balance sheet for the fiscal 2002-03 in accordance with the guidelines of the Reserve Bank", the sources added.