SBI exposure in Maytas is about Rs 500 crore: Bhatt
State Bank of India said that it has an exposure of nearly Rs 500 crore in two Maytas firms promoted by the family of Satyam's disgraced founder Ramalinga Raju.india Updated: Jan 12, 2009 16:39 IST
State Bank of India on Monday said it has an exposure of nearly Rs 500 crore in two Maytas firms promoted by the family of Satyam's disgraced founder Ramalinga Raju, although there was no direct exposure to the beleaguered IT company itself.
"Our exposure in Maytas Properties and Maytas Infra both fund and non-fund is less than Rs 500 crore," SBI Chairman OP Bhatt told reporters on the sidelines of Vibrant Gujarat Global Investors' Summit here.
Maytas Properties and Maytas Infra are promoted by Raju's family and have interests in realty and construction. There is no exposure of the bank in Satyam Computer Services, Bhatt said, adding that "there are no personal loans given to Raju and their sons".
Noting that there is no problem with the Maytas accounts, Bhatt said all the exposure are collateralised and accounts are regular.
The Bank is reviewing all these accounts and at the same time sharing information with both the central government and RBI to see if there is need to take proactive action from its side, he said.
Asked about the risk, Bhatt said, there could be some risk if the projects for which loans were given do not take off. Funds are generally given after due diligence Andhra Pradesh Chief Minister Y S Rajasekhara Reddy had said yesterday that he had asked the chief secretary to review the ability of the Maytas firms to execute projects awarded to them in light of the problems the promoter family is facing. Bhatt, however, said that Satyam does provide services to IT-Department of the bank along with other reputed vendors like Infosys, TCS and Wipro.