BUSINESS

IDBI lends Rs 300 cr to Satyam

Source:PTI
February 09, 2009 15:21 IST

IDBI Bank has given Rs 300-crore (Rs 3-billion) loan to the fraud-hit Satyam Computer.

"We have given a Rs 300-crore loan to Satyam.

The remaining Rs 300 crore has been offered by Bank of Baroda," IDBI Bank chairman and managing director Yogesh Agarwal said on Monday on the sidelines of an Assocham seminar in Mumbai.

The government-appointed Satyam board had recently said that it secured Rs 600-crore (Rs 6-billion) bank loans, which would help it fulfil its immediate fund requirements.

IDBI Bank's board will take a decision on the sale of its Pune-based home loan subsidiary, IDBI Home Finance Ltd by the end of this month, Agarwal said.

The lender's board, which met on January 23 to take a call on the IHFL sale, had deferred the decision, citing the need for more information about prospective buyers.

Three leading players have emerged as contenders for IHFL -- Dewan Housing, Religare Enterprises and Tata Capital.

According to IDBI Bank sources, Dewan Housing has put in the highest bid for the unit.

On the bank's credit growth, Agarwal said it expects 35 per cent credit growth for the fiscal, well above the 25 per cent industry growth projected by the central bank.

"Credit growth for the industry has been pegged at 25 per cent by the central bank. We have seen growth of around 30 per cent so far this fiscal.

The bank expects to clock around 35 per cent for the full financial year," he said.

Noting that credit demand in the system needs pick up, Agarwal said a correction in real estate prices was needed to stimulate home-loan demand.

Source: PTI
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