Business Daily from THE HINDU group of publications
Saturday, Jan 10, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Saturday, Jan 10, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Money & Banking
-
Credit Market Industry & Economy - Infrastructure Banks taking stock of loans to Maytas cos Around a dozen banks, including SBI, Punjab National Bank, Bank of India, IDBI Bank, ICICI Bank, and Axis Bank, are bankers to Maytas Infra, listed on the exchanges. Our Bureau Mumbai, Jan. 9 Banks will be taking a hard look at the loans sanctioned and the performance of the loans already disbursed to Maytas Infra and Maytas Properties following Satyam Computer Services’ promoter Mr. B Ramalinga Raju admitting to a massive accounting fraud. Mr Raju’s sons – Mr Teja Raju and Mr Rama Raju – are promoters of the two companies. “As far as funding goes, we will neither slam the brakes nor keep the door open. However, in the light of new developments, stock taking by banks is definitely called for,” said a senior SBI official. Around a dozen banks including State Bank of India, Punjab National Bank, Bank of India, IDBI Bank, ICICI Bank, Axis Bank, are bankers to Maytas Infra, which is listed on the Stock Exchange, Mumbai, and the National Stock Exchange. Details about the bankers to the unlisted Maytas Properties, however, could not be ascertained. As of March 31, 2008, Maytas Infra had secured loans of Rs 757 crore and unsecured loans of Rs 179 crore. As of May 31, 2008, the company had Rs 6,231 crore worth of orders in hand. “Banks weigh the techno-economic feasibility, financial viability and bankability of a project before sanctioning and disbursing loans. This is to ensure that cash flows from a project are sufficient to take care of debt servicing and there is adequate security and risk mitigation built in. In the case of Maytas too, banks, which have lent as part of a consortium, would have definitely employed the rigour while appraising its projects. Following the Satyam episode, we will review status of our lending to Maytas as a matter of abundant precaution,” said a senior Bank of India official. Modest exposureThough Axis Bank has no direct or indirect exposure to Satyam Computer Services, the bank has an exposure of Rs 20 crore to Maytas Properties and Rs 30 crore to Maytas Infra. A top Axis Bank official said that the bank’s exposure to these companies was modest and that it would be watchful about developments. Not released yetBank of Baroda has sanctioned a loan to Maytas Infra, but has not released any amount so far, said a senior official from the bank. “As infrastructure projects are long-term projects, the company has not pressed us for funds so far. If we feel the company’s records are not in order or they are not fulfilling the conditions in the loan agreement, we can hold back the loan. But for now, we will assess the situation as it develops.” Maytas denies bid for merger, takeover Maytas ‘deal’: Satyam told to provide details of board meet Satyam to buy Maytas Infra, Maytas Properties for $1.6 b More Stories on : Credit Market | Infrastructure | Corporate Governance
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
