Rediff India Abroad
 Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Get news updates:

Home > India > Business > PTI > Report

   Discuss   |      Email   |      Print   |   Get latest news on your desktop

SBI exposure in Maytas is about Rs 500 crore: Bhatt

January 12, 2009 16:33 IST

State Bank of India [Get Quote] on Monday said it has an exposure of nearly Rs 500 crore (Rs 5 billion) in two Maytas firms promoted by the family of Satyam's [Get Quote] disgraced founder Ramalinga Raju, although there was no direct exposure to the beleaguered IT company itself.

"Our exposure in Maytas Properties and Maytas Infra both fund and non-fund is less than Rs 500 crore," SBI chairman O P Bhatt told reporters on the sidelines of Vibrant Gujarat Global Investors' Summit in Ahmedabad.

Maytas Properties and Maytas Infra are promoted by Raju's family and have interests in realty and construction.

There is no exposure of the bank in Satyam Computer Services, Bhatt said, adding that 'there are no personal loans given to Raju and their sons'.

Noting that there is no problem with the Maytas accounts, Bhatt said all the exposure are collateralised and accounts are regular.

The bank is reviewing all these accounts and at the same time sharing information with both the central government and RBI to see if there is need to take proactive action from its side, he said.

Asked about the risk, Bhatt said, there could be some risk if the projects for which loans were given do not take off.

Funds are generally given after due diligence.

Andhra Pradesh chief minister Y S Rajasekhara Reddy said on Sunday that he had asked the chief secretary to review the ability of the Maytas firms to execute projects awarded to them in light of the problems the promoter family is facing.

Bhatt, however, said that Satyam does provide services to IT-Department of the bank along with other reputed vendors like Infosys [Get Quote], TCS [Get Quote] and Wipro [Get Quote].

© Copyright 2008 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

   Email   |      Print   |   Get latest news on your desktop