Business Daily from THE HINDU group of publications
Sunday, Jan 11, 2009
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Business Daily from THE HINDU group of publications Sunday, Jan 11, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Human Resources Money & Banking - Credit Cards & Debit Cards Info-Tech - Software
G. Naga Sridhar Hyderabad, Jan. 10 The Satyamites, who were amongst the most pampered employees in the industry till recently, are feeling the pinch of the Satyam fiasco not only in office but also outside. Banks seem to have brought their rating down by significantly bringing down the cash/credit limits on their credit cards. At least two banks, ICICI Bank and HDFC Bank, have cut down the credit limits on the cards of the ill-fated Satyam’s employees in the recent past while reports sayHSBC and Citibank have followed suit. “While we are in complete uncertainty over our job and salary, the message on cut in credit limit on my ICICI card has added insult to injury.” Mr Sanatan, a Satyam employee, told Business Line. His Rs 2-lakh credit limit was cut down by the bank to Rs 40,000 which he has already spent. “While we have nothing against Satyam employees, it is true that the credit has been cut,” said an ICICI Bank official over phone from Mumbai adding that it is a “precautionary” measure. “We are also answerable to our shareholders. Credit card is an unsecured loan. If there is a possibility of default between a housing/auto loan and a credit card payment, the latter will be stopped,” he said. It is the prudence of any banker to be sceptical while the source of income (job) itself is doubtful, he added. Another senior Satyam staffer, who did not want to be identified, said that HDFC Bank had brought down his credit card limit from Rs 3 lakh to less than Rs 2 lakh and informed him about it. Mr Paramesh (name changed) has a more painful experience when his HSBC Card declined honouring a payment at a supermarket this morning. “I have no intimation on this and am shocked how things can go wrong all of a sudden,” he said. When contacted, HSBC officials declined to comment on the issue. According to sources, the banks operating the salary accounts are also instructing their staff to “keep in view” any outstanding payments on advances from the employees before crediting the next salary. To quit or not to quit – Satyam employees risk lower salary elsewhere Satyam staff in dilemma as cash crunch fears rise Does the bell toll for us too, worry IT employees More Stories on : Human Resources | Credit Cards & Debit Cards | Software | Satyam Computer Services Ltd
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