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IFCI recovers Maytas dues, ICICI Bank takes Rs 95-cr hit
Sidhartha in Mumbai | February 19, 2009 10:19 IST
The Rajus-promoted Maytas Infra has started taking a toll on the banking system with non-banking finance company IFCI Ltd [Get Quote] revoking a guarantee provided by ICICI Bank [Get Quote], to recover its dues.
In the coming days, other lenders are expected to initiate similar steps to recover their dues from the company, which is facing the prospects of a change of management.
IFCI executives said that the company revoked the guarantee earlier this month to recover its dues amounting to Rs 95 crore (Rs 950 million) from Maytas Infra.
"We no longer have any debt exposure to Maytas Infra though we hold 17 per cent stake in the company," said an IFCI spokesperson.
When contacted, an ICICI Bank spokesperson said: "We are monitoring our exposure and exploring possible courses of action with other lenders." He, however, refused to disclose the level of exposure that the private sector lender had to Maytas Infra and Maytas Properties.
A host of Indian financial institutions ranging from State Bank of India [Get Quote] (Rs 500 crore or Rs 5 billion) to IDBI Bank (Rs 300 crore or Rs 3 billion), Indian Overseas Bank [Get Quote] (over Rs 90 crore or Rs 900 million), Central Bank of India (Rs 49 crore or Rs 490 milliom) and Bank of India (Rs 215 crore or Rs 2.15 billion by way of guarantees), and have exposure to the two companies for which the corporate affairs ministry has sought permission to supercede the board of directors.
Bank of India, however said that it has not seen any guarantees being revoked so far.
In addition, companies such as IDFC [Get Quote] have provided to some of the infrastructure projects being put up by Maytas Infra.
In case of exposure to projects, which have been hived off into special purpose vehicles, sources said, financial institutions had adequate cover through the right to take management control.
In addition, Maytas was a co-promoter in a large number of cases, which provided additional comfort to the lenders.
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