Debtors may target Satyam’s campuses | india | Hindustan Times
Today in New Delhi, India
Mar 29, 2017-Wednesday
New Delhi
  • Humidity
  • Wind

Debtors may target Satyam’s campuses

india Updated: Jan 09, 2009 22:21 IST
Mahua Venkatesh

As debtors close in, several plush campuses or buildings owned by disgraced Satyam Computer Services Limited peppered across eight cities in India could come under a threat as banks consider options to recover outstanding loans.

Gain for TCS, Infy & Wipro?
Tata Consultancy Services (TCS), Infosys Technologies and Wipro are expected to gain $200-$300 million in revenues as clients of Satyam shift to safety.
“All firms we spoke to indicated that large domestic IT companies would gain from Satyam’s clients shifting to other large IT vendors,” brokerage firm Anand Rathi Financial Services said in a note on Satyam. Satyam has annualised billings of $2 billion spread across 650 clients. HTC / New Delhi

According to it’s balance sheet, the outstanding borrowings of Satyam Computer Services stood at Rs 1,464 crore as on March 31, 2008, though they could be balanced against receivables.

The Reserve Bank of India has sought details of credit given out by these banks to the beleaguered company, banking sources said.

The company has spread its loan portfolio across five banks, Bank of Baroda, BNP Paribas, ICICI, Citibank and HSBC, they added.

Banking sources, who did not wish to be identified, said creditors would consider invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act that allows lenders to recover their non-performing assets without the intervention of a court.

Legal expert Manoj Kumar told Hindustan Times that Satyam would have to first default in repayment to allow banks to bring SARFAESI into effect. An asset is considered non-performing only if there is no interest payment for a 90-day period.

However, it will take at least five to six months more before it has a real impact.

When contacted, BNP Paribas spokesperson refused to comment on the issue.

Bank of Baroda Executive Director V Santhana Raman said there was nothing to worry at this point. “It is unlikely to impact us,” he said. “It will take a few months before the process can be kickstarted. Banks would not be able to act before that, even if the writing on the wall is clear and until now it has not defaulted,” Kumar said.