BUSINESS

IDBI Bank's Maytas exposure at Rs 300 cr

Source:PTI
January 21, 2009
IDBI Bank on Wednesday said it has an exposure of around Rs 300 crore (Rs 3 billion) to the Raju family-owned Maytas companies and is willing to consider any proposal for loans to Satyam Computer if the company approaches it.

"We have an exposure of around Rs 300 crore to Maytas group companies...we are willing to consider any proposal (for loans) from Satyam Computer if the company approaches us," IDBI Bank chairman and managing director Yogesh Agarwal said.

The Hyderabad-based software firm plunged into a crisis after its former Chairman B Ramalinga Raju admitted to over Rs 7,000 crore (Rs 70 billion) fraud on January 7. Satyam's new board is desperately looking for funds to keep the company afloat.

Agarwal, however, said Satyam has not approached IDBI Bank for loans so far. "We haven't got any proposal so far."

The banking system was likely to witness a rise in non-performing assets (NPAs) in the next fiscal but IDBI Bank has its bad loans under manageable level, Agarwal said. "There may be some NPAs in the next fiscal. For us it is under controllable levels."

However, the bank has seen stress in certain portfolios like textile, steel and real estate, he said.

Agarwal said the bank was likely to take a call on reducing, lending and deposit rates after assessing the outcome of the Quarterly Review of the RBI's monetary policy scheduled for this month-end.

The bank would take a decision on sale of its Pune-based home loans subsidiary, IDBI Home Finance Ltd, on January 23, he said.

Source: PTI
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