IDBI, Bank of Baroda lend Satyam Rs300 cr each

IDBI, Bank of Baroda lend Satyam Rs300 cr each
PTI
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First Published: Mon, Feb 09 2009. 02 55 PM IST
Updated: Mon, Feb 09 2009. 02 55 PM IST
Mumbai: State-owned IDBI Bank has given a Rs300 crore loan to the fraud-hit Satyam Computer.
“We have given a Rs300 crore loan to Satyam. The remaining Rs300 crore has been offered by Bank of Baroda,” IDBI Bank chairman and managing director Yogesh Agarwal said on Mondya on the sidelines of an Assocham seminar here.
The Government-appointed Satyam board had recently said that it secured Rs600 crore bank loans, which would help it fulfil its immediate fund requirements.
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, Agarwal said.
The lender’s board, which met on 23 January to take a call on the IHFL sale, had deferred the decision, citing the need for more information about prospective buyers.
Three leading players have emerged as contenders for IHFL - Dewan Housing, Religare Enterprises and Tata Capital. According to IDBI Bank sources, Dewan Housing has put in the highest bid for the unit.
On the bank’s credit growth, Agarwal said it expects 35% credit growth for the fiscal, well above the 25% industry growth projected by the central bank.
“Credit growth for the industry has been pegged at 25% by the central bank. We have seen growth of around 30 per cent so far this fiscal. The bank expects to clock around 35% for the full financial year,“ he said.
Noting that credit demand in the system needs pick up, Agarwal said a correction in real estate prices was needed to stimulate home-loan demand.
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First Published: Mon, Feb 09 2009. 02 55 PM IST
More Topics: Satyam | IDBI | Bank of Baroda | Loan | Investigation |