Banks keeping fingers crossed on Maytas board
Banks, which have an exposure of Rs 8,000 crore in Maytas Infra and Maytas Properties Ltd are keeping their fingers crossed after the government decided to supersede the boards of these two companies. Mahua Venkatesh reports.business Updated: Feb 18, 2009 22:46 IST
Banks, which have an exposure of Rs 8,000 crore in Maytas Infra and Maytas Properties Ltd are keeping their fingers crossed after the government decided to supersede the boards of these two companies. The two companies are promoted by the family of B Ramalinga Raju, disgraced founder chairman of Satyam Computers.
Of the total exposure about Rs 3,000 crore is being funded and the rest non-funded in the form of performance guarantees.
The country’s largest lender the State Bank of India too has an exposure of about Rs 500 crore in these firms. That apart, Bank of India, IDBI also have sizeable exposure to these companies.
However, the government move has also come as a sigh of relief for lenders.
“Now with the government deciding to take over the managements of these two companies, things can only start looking up. There had been a lot of uncertainty until now,” a senior official at a PSU bank said.
“We are closely watching the developments and a decision would be taken after weighing all pros and cons,” an official source on condition of anonymity told Hindustan Times. He pointed out that a large chunk of the total exposure has been secured. “We have not yet asked for a recall of these loans,” the official said, adding that banks would rather prefer to "wait and watch" instead of hastily deciding to recall the loans.
(With Rajendra Palande in Mumbai)