Global Trust Bank fired all its engines today, jumping 6.3% to Rs 18.55, following reports that Newbridge Capital was eyeing a 49% stake in the bank.

Volumes too seemed substantial by 11:00 IST today, at over 2.5 lakh shares on BSE . So far this month, Global Trust Bank (GTB) has risen 35% from Rs 13.75 on 9 May 2003.

The surfacing of Newbridge Capital as a potential acquirer has boosted the scrip. GTB, itself, is in the process of rewriting its fiscal 2002 balance sheet by making additional provisions to take care of its bloated non-performing assets (NPAs).

GTB said that it is mulling various options for raising additional capital. It may be recalled that GTB had received approval from RBI for utilising reserves of Rs 252 crore towards additional write-off required towards non-performing assets in FY 2001-02. The bank had appropriated Rs 201.95 crore from the reserves for such write-offs.

In January 2003, GTB appointed Lazard India as financial advisor for advice on various options to raise additional capital.

For Q3 ended 31 December 2002, the private sector bank reported a flat net profit of Rs 8.79 crore as against Rs 8.91 crore posted for the same period in the previous year. Total income of the bank registered a sharp fall at Rs 196.40 crore as against Rs 243.43 crore during the same period in the previous year. The bank proposes to continue its thrust on improving its asset quality and broad-basing its risk profile.

As on 31 March 2003, promoters held 20.8% stake in GTB, while the public, institutions and foreign bodies held 40.81%, 0.35% and 19.60%, respectively.