Maytas gives banks Rs 8K-cr headache

Bangalore: The Satyam saga, which has pushed the infotech firm’s sister concerns Maytas Infrastructure and Maytas Properties into a crisis, is now haunting leading banks that have loaned funds and stood guarantee for them.
Maytas is headed by Teja Raju, son of former Satyam chief Ramalinga Raju. The banks are now left with a whopping Rs 8,000-crore headache. While ICICI Bank has the largest exposure of Rs 3,000 crore, mostly in guarantees, State Bank of India has given a loan of Rs 500 crore and Bank of India has an exposure of Rs 215 crore.
A senior manager of ICICI Bank in Bangalore said ‘the matter is with the corporate department of the bank and they will look into the matter. This exposure will not affect the daily affairs of the bank.’ The infrastructure firms are now caught in a vicious circle. Starved of capital, many of their projects have come to a grinding halt. And with the risk of losing other projects, their openings for earning revenues are disappearing.
The Government of Karnataka is all set to cancel the contract awarded to Maytas to build greenfield airports in Shimoga and Gulbarga.
The Chief Minister had asked the Chief Secretary to take a decision on Maytas projects in a day or two.
31/01/09 Mohammed Shariff/ExpressBuzz

To Read the News in full at Source, Click the Headline

Categories: Airports Jan 2009, Merchant Airports Jan 2009, New Jan 2009