18 banks have Rs 660-cr exposure to Satyam
No need to worry much, says RBI official.
--------------------------------------------------------------------------------
Total funded loans
Six banks have Rs 274.53-crore loan exposure
Citibank tops list with Rs 196 crore
Ten banks have investment exposure of Rs 12.49 crore
--------------------------------------------------------------------------------
K.V. Kurmanath
G. Naga Sridhar
Hyderabad, Jan. 29 Eighteen banks, which include both Indian and multi-national
entities, have varying degrees of exposure to the crisis-ridden Satyam Computer
Services. The information, gathered by the Reserve Bank of India from various
banks, puts the total exposure at Rs 660.48 crore as on January 8 (a day after
Mr B. Ramalinga Raju, the former Chairman of Satyam Computer Services,
confessed to fudging the company's books to the tune of Rs 7,136 crore).
While the total funded exposure stood at Rs 287 crore, the total non-funded
exposure was put at Rs 373.47 crore. (Funded exposure refers to advancement of
funds as loans to a company or its subsidiaries. The non-funded exposure is
issue of letters of credit or guarantees to companies.)
When contacted, a senior RBI official said: "We can say that there is nothing
to worry about too much and the banks have enough capital to withstand any
scenario".
Safeguarding interests
Six banks (Citibank, HDFC Bank, Kotak Mahindra Bank, HSBC and ICICI Bank) have
an aggregate loan exposure of Rs 274.53 crore to Satyam. Citibank tops the list
with Rs 196 crore of total funded loans and advances, followed by HSBC Bank at
Rs 16 crore.
Seven banks - Bank of America, Citibank, Bank of Baroda, HDFC Bank, ICICI Bank,
BNP Paribas and HSBC Bank - have non-funded exposures totalling Rs 373.47
crore.
This includes contingents and commitments of Rs 118.17 crore and
marked-to-market gains of 185.29 crore on derivative contracts with the company.
Ten banks - Bank of America, Allahabad Bank, Central Bank of India, Corporation
Bank, OBC, PNB, UCO Bank, Union Bank of India, Indian Bank and Federal Bank -
have aggregate investment exposures of Rs 12.49 crore.
"Banks are taking steps to safeguard their securities and interests in respect
of their exposures to the Satyam group," the RBI has assured the Union
Government.
Loans to Maytas firms
Though SBI had no exposure to Satyam, it had an exposure of Rs 500 crore to the
Maytas firms, promoted by Mr Raju's kin. State Bank of Hyderabad had not
extended any loans to Satyam. But it had advanced Rs 189 crore to Maytas Infra,
the company promoted by Mr Raju's reatives. "The loans were given for specific
projects and they are secured loans," Ms Renu Challu, Managing Director of SBH,
told Business Line.
According to Mr R.S. Reddy, Chairman and Managing Director, Andhra Bank, the
bank has some "indirect' exposure" to Maytas for about Rs 45 crore. "This loan
was given to a consortium where ICICI Ventures is a majority stakeholder along
with some other partners. Maytas Infra has only 15 per cent stake in the
project. Even this loan is well secured," he said.
Deposits
Enquiries made by the RBI with the banks revealed that Satyam had deposits of
Rs 78 crore as on January 8, 2009 (as against Rs 65 crore on March 31, 2008.
But as per the audited (fudged) figures, the amount was Rs 4,274 crore).
http://www.thehindubusinessline.com/2009/01/30/stories/2009013051981500.htm
ekamber
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