Banks submit details of Satyam exposure to RBI
As part of its probe on scam-tainted Satyam, RBI on Saturday collected particulars of transactions that various banks including SBI and ICICI Bank had with the IT company.business Updated: Jan 10, 2009 14:51 IST
As part of its probe on scam-tainted Satyam, RBI on Saturday collected particulars of transactions that various banks including SBI and ICICI Bank had with the IT company.
"We have submitted the details of our business deals with Satyam to the Reserve bank. In the wake of these developments (in Satyam), banks are bound to be extra cautious while lending to such corporates," SBI's Chief Financial Officer Ashok Mukand told PTI in Mumbai.
When asked, Citibank declined to comment if the company was its client and whether the bank had given details to RBI. "We are unable to comment due to client confidentiality," a spokesperson of the bank said.
SBI is undertood to have extended loans to the Hyderabad-based company, but the officials declined to divulge the details of its exposure to Satyam.
Leading public-sector lender, Bank of Baroda, has also submitted the details of its "insignificant" exposure to Satyam to the apex bank, its CMD, M D Mallya said. "We do not have any fund-based exposure to this company (Satyam)," Mallya said. However, the lender has some current account deposits of Satyam.
Leading private-sector lender, ICICI Bank, is also believed to have provided the details to the RBI about its dealings with Satyam.
The bank, in a statement, had said that it did not have any fund-based exposure to Satyam Computer Services other than a marginal exposure of about Rs 3-crore on account of a forward contract.
Satyam is also maintaining a deposit with ICICI Bank in a current account. The balance in this account is not material, ICICI bank said.India's fourth largest outsourcing firm plunged into a crisis after its Chairman, B Ramalinga Raju resigned admitting gross manipulations in the company's balance sheet. Other leading banks, which have exposure to Satyam include foreign lenders, Citibank, BNP Paribas, HSBC and private-sector lender HDFC Bank.
HDFC Bank said it did not have any "significant" exposure to the struggling client.
However, the bank has a small exposure in the form of vehicle loans given to Satyam's employees, an HDFC Bank spokesperson said.