Kuwait's Gulf Bank board expected to resign-papers

KUWAIT, Nov 1 (Reuters) - The executive board of troubled Kuwaiti lender Gulf Bank (GBKK.KW), which has been hit by losses on derivatives, is expected to resign, two local newspapers said on Saturday.

Daily al-Qabas said in an unsourced report the board would resign on Sunday in agreement with the central bank which last Sunday stepped in to support the bank, while al-Rai newspaper also said the board was on its way out, citing an unidentified board member.

Gulf Bank and the central bank could not be reached for comment on Saturday when banks are closed in the Gulf Arab state.

Qabas said the central bank would grant the lender a loan worth 400 million dinars to support its business. Gulf Bank has so far not specified losses from derivative deals.

Gulf Bank's Chairman Kutayba al-Ghanim meanwhile told CNBC Arabiya station that customers had withdrawn about 37 million dinars ($136.9 million) of its overall deposits worth 4 billion dinars since the bank unveiled its problems with derivatives.

Kuwait has decided to guarantee deposits at all banks as a result of the Gulf Bank case.

(Reporting by Ulf Laessing; Editing by Chris Pizzey)