Monday, January 12, 2009

RBI Has Asked The Banks To Furnish The Info To Satyam Computers - Jan 12, 2009

Reserve Bank of India has asked the banks to furnish the information to it on their fund as well non-fund based exposure to Satyam Computer Services Ltd and associate companies in the Satyam Group.

The indications are that the banks would be required to spell out the kind of collaterals that they had obtained from Satyam Group for any loans or overdraft provided to them. The RBI is keen to assess the exposure of the banking system to Satyam Computer Services.

In line with this, the sources said that the RBI will be weighing the information provided by banks on their fund and non-fund based exposure to Satyam Group, as also the collaterals provided by these companies to assess the possible systemic impact of the fraud.

"In view of the revelations regarding Satyam Computer Services, RBI has sought details of banks'' exposure to the Satyam Group as a whole and rightly so. Notwithstanding the fact that we have lent against adequate security, we are obviously concerned as public money has been channelled into projects. We cannot allow them to go waste," said a top SBI official.

"We have a working capital exposure to only Maytas Infra. This exposure is covered by adequate collateral. So far, the company has serviced the loan on time. However, we will assess the company''s position in the light of new developments. We will update the RBI about our exposure," said a top IDBI Bank official.

On the other hand, in a statement, ICICI Bank had said that it did not have any fund-based exposure to Satyam other than of about Rs 3-crore a marginal exposure on account of a forward contract. However, in its current account Satyam is also maintaining a deposit with the Bank. The balance in this account is not material, the bank said.

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