-No need to worry much, says RBI official.
-Total funded loans
-Six banks have Rs 274.53-crore loan exposure
-Citibank tops list with Rs 196 crore
-Ten banks have investment exposure of Rs 12.49 crore
Hyderabad, Jan. 29 Eighteen banks, which include both Indian and multi-national entities, have varying degrees of exposure to the crisis-ridden Satyam Computer Services. The information, gathered by the Reserve Bank of India from various banks, puts the total exposure at Rs 660.48 crore as on January 8 (a day after Mr B. Ramalinga Raju, the former Chairman of Satyam Computer Services, confessed to fudging the company’s books to the tune of Rs 7,136 crore).
While the total funded exposure stood at Rs 287 crore, the total non-funded exposure was put at Rs 373.47 crore. (Funded exposure refers to advancement of funds as loans to a company or its subsidiaries. The non-funded exposure is issue of letters of credit or guarantees to companies.)
When contacted, a senior RBI official said: “We can say that there is nothing to worry about too much and the banks have enough capital to withstand any scenario”.
Six banks (Citibank, HDFC Bank, Kotak Mahindra Bank, HSBC and ICICI Bank) have an aggregate loan exposure of Rs 274.53 crore to Satyam. Citibank tops the list with Rs 196 crore of total funded loans and advances, followed by HSBC Bank at Rs 16 crore.
Seven banks — Bank of America, Citibank, Bank of Baroda, HDFC Bank, ICICI Bank, BNP Paribas and HSBC Bank — have non-funded exposures totalling Rs 373.47 crore.
This includes contingents and commitments of Rs 118.17 crore and marked-to-market gains of 185.29 crore on derivative contracts with the company.
Ten banks — Bank of America, Allahabad Bank, Central Bank of India, Corporation Bank, OBC, PNB, UCO Bank, Union Bank of India, Indian Bank and Federal Bank — have aggregate investment exposures of Rs 12.49 crore.
“Banks are taking steps to safeguard their securities and interests in respect of their exposures to the Satyam group,” the RBI has assured the Union Government.
Loans to Maytas firms
Though SBI had no exposure to Satyam, it had an exposure of Rs 500 crore to the Maytas firms, promoted by Mr Raju’s kin. State Bank of Hyderabad had not extended any loans to Satyam. But it had advanced Rs 189 crore to Maytas Infra, the company promoted by Mr Raju’s reatives. “The loans were given for specific projects and they are secured loans,” Ms Renu Challu, Managing Director of SBH, told Business Line.
According to Mr R.S. Reddy, Chairman and Managing Director, Andhra Bank, the bank has some “indirect’ exposure” to Maytas for about Rs 45 crore. “This loan was given to a consortium where ICICI Ventures is a majority stakeholder along with some other partners. Maytas Infra has only 15 per cent stake in the project. Even this loan is well secured,” he said.
Enquiries made by the RBI with the banks revealed that Satyam had deposits of Rs 78 crore as on January 8, 2009 (as against Rs 65 crore on March 31, 2008. But as per the audited (fudged) figures, the amount was Rs 4,274 crore).