IDBI, BoB lend Rs300 cr each to Satyam

IDBI, BoB lend Rs300 cr each to Satyam
PTI
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First Published: Mon, Feb 09 2009. 07 20 PM IST
Updated: Mon, Feb 09 2009. 07 20 PM IST
Mumbai: “State-owned IDBI Bank has given Rs300 crore loan to the fraud-hit Satyam Computer Services,” a top bank official has said.
“We have given Rs300 crore loan to Satyam. The rest Rs300 crore has been offered by Bank of Baroda,” IDBI Bank’s Chairman and Managing Director Yogesh Agarwal said.
The Satyam board had recently said that it had secured Rs600 crore worth bank loans that would help it fulfil its immediate fund requirements.
“The bank would consider extending loan to Satyam in future as well, if the company approaches it with a viable proposal,” Agarwal said.
Noting that the credit-demand in the system needs to be picked up, Agarwal said a correction in real estate prices was needed to stimulate the home loan demand.
“Despite the fact that IDBI Bank was willing to offer home loans at 8.5%, not many developers have approached the bank for credit at this rate,” Agarwal said.
“Developers don’t seem to be keen to borrow at this rate. As a result, growth in credit disbursement for house construction is not as per expectations,” Agarwal said adding: “IDBI Bank’s Board will take a decision on the sale of its Pune-based home loan subsidiary, IDBI Home Finance Ltd (IHFL) by the end of this month.”
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First Published: Mon, Feb 09 2009. 07 20 PM IST