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'BOI has Rs 215-cr exposure to Maytas'
January 22, 2009 18:30 IST
Bank of India said on Thursday it has a non-fund based exposure of Rs 215 crore (Rs 2.15 billion) to Raju-family owned Maytas Infra, but has not provisioned it 'as it was not needed'.
"We have given a bank guarantee for Maytas Infra to the tune of Rs 215 crore. (However), the bank has not made any provisioning to this exposure... The problem would arise only if the guarantee is invoked," Bank of India chairman and managing director T S Narayanasami told reporters.
The loan was offered to Maytas by a consortium of banks to fund one of its infrastructure projects that has an execution period of few years. However, BOI has not given any direct credit to Maytas, a BOI official said.
Maytas Infra came under the scanner of regulators and other agencies probing Satyam [Get Quote] fiasco after Hyderabad-based IT giant plunged into a crisis on account of gross manipulations committed by its former chairman B Ramalinga Raju.
Following this, Andhra Pradesh chief minister Y S Rajasekhara Reddy had asked the chief secretary to review the ability of the twin Maytas companies to execute the infrastructure projects awarded to it.
State Bank of India [Get Quote] chairman O P Bhatt had recently said that the lender has total exposure of Rs 500 crore (Rs 5 billion) to the Maytas companies.
Leading state-owned lender IDBI Bank also has an exposure of about Rs 300 crore (Rs 3 billion) to the Maytas companies -- Maytas Infra and Maytas Properties, its CMD Yogesh Agarwal had said.
IDBI Bank is, however, willing to lend to the crisis-ridden Satyam Computer Services if the company approaches the bank with a 'viable' proposal, Agarwal said.
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