SBI takes cautious approach
The country’s largest lender the SBI which has outsourced its Internet banking operation to Satyam Computer Services Limited, is in a dilemma. It is closely watching the Govt’s move aimed at rescuing the disgraced IT firm, reports Mahua Venkatesh.india Updated: Jan 12, 2009 21:30 IST
The country’s largest lender — the State Bank of India — which has outsourced its Internet banking operation to Satyam Computer Services Limited, is in a dilemma. It is closely watching the government’s move aimed at rescuing the disgraced IT firm. It is also putting in place its own IT team to handle the division in case of an adverse situation.
Meanwhile, the bank has an exposure of about Rs 500 crore in Maytas Properties and Maytas Infra, promoted by the family of B Ramalinga Raju, the disgraced founder of Satyam Computers, OP Bhatt, chairman, SBI said.
The bank is reviewing all these accounts while sharing necessary information with the central government and the Reserve Bank of India to see if there was any immediate need to take any action.
However, the bank has no direct exposure to the IT firm, Bhatt said
SBI handles part of the government’s provident fund apart from the treasury business.
However, a senior executive in charge of Internet banking felt there was no need to press the panic button yet.
“We do not immediately want to engage another IT firm in place of Satyam, though we are weighing all options. But as of now, the government looks in control of the situation and we are hopeful that thing would sort out soon,” the executive said. He underlined that “no department or customer would be put to inconvenience due to the recent development.”
All India Bank Employees Association, meanwhile, said that there should be a thorough investigation on the issue. “Investigation must be held to ensure that data which Satyam was privy to, with SBI as its customer, has not been not misused,” CH Venkatachalam, secretary, AIBEA told HT.