SBI to wait for 'clarity' before lending further to Maytas
State Bank of India has said it has put on hold any further lending until there is clarity on the status of the companies, which are under scanner due to Satyam-scam.business Updated: Jan 19, 2009 06:19 IST
State Bank of India, which has an exposure of Rs 500 crore to Raju family-promoted two Maytas firms, has said it has put on hold any further lending until there is clarity on the status of the companies, which are under scanner due to Satyam-scam.
"Maytas has been our client for the past many years. The decision on whether to continue lending to Maytas can be taken only after clarity comes in the company's status," a highly placed SBI official told PTI in Mumbai.
SBI has an exposure of Rs 500 crore to Maytas Properties and Maytas Infra in both 'fund and non-fund' based categories.
Hyderabad-based Satyam Computers plunged into a crisis after its former Chairman, B Ramalinga Raju admitted that he cooked up the company's balance sheet for seven years with inflated profit numbers and understated liabilities.
Following this, Raju family-promoted Maytas had also come under the scanner of regulators.
However, the bank did not have any exposure to the beleaguered Satyam Computers, the official said.
Andhra Pradesh Chief Minister, YS Rajasekhara Reddy had asked the Chief Secretary to review the ability of Maytas firms to execute projects awarded to them in the wake of issues in Satyam.
"We have been extending credit to projects which are viable. This strategy would continue as the corporates need working capital in times of liquidity shortage in the market," the official said.