The government banks have an exposure of Rs 3,300 crore in Maytas, the subsidiary of beleaguered information technology (IT) major Satyam. The state-owned banks, however, have made no investments in the scam-tainted parent company.
A top finance ministry official said the government which is holding on to Rs 2,700 crore worth securities belonging to Maytas would continue with its financial bailout of the infrastructure arms of the troubled IT giant.
“The infrastructure and real estate subsidiaries of Satyam are engaged in large projects (worth more than Rs 30,000 crore), and at this stage the government would not like them to fail,” the official said, much in line with what the Centre had earlier stated that it would protect the interests of employees and shareholders and not let the company sink.
Sources said funds pledged by the PSU banks to Satyam subsidiaries amount to Rs 2,000 crore while non-fund advances amount to Rs 1,300 crore. Most of the money has been disbursed by the banks, the official confirmed. As against the finances made available to the subsidiaries of the scam-tainted firm, the government has in its possession securities worth Rs 2,700 crore in the form of mortgages of landholdings and other assets.
