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[[News No 1.]]As part of its probe on scam-tainted Satyam, RBI today collected particulars of transactions that various banks including The bank, in a statement, had said that it did not have any fund-based exposure to Satyam Computer Services other than a marginal exposure of about Rs 3-crore on account of a forward contract.
Satyam is also maintaining a deposit with ICICI Bank in a current account. The balance in this account is not material, ICICI bank said. We have submitted the details of our business deals with Satyam to the Reserve bank. In the wake of these developments (in Satyam), banks are bound to be extra cautious while lending to such corporates, SBIs Chief Financial Officer Ashok Mukand told.When asked, Citibank declined to comment if the company was its client and whether the bank had given details to RBI.
We are unable to comment due to client confidentiality, a spokesperson of the bank said.
SBI is undertood to have extended loans to the Hyderabad-based company, but the officials declined to divulge the details of its exposure to Satyam.
Leading public-sector lender, Bank of Baroda, has also submitted the details of its insignificant exposure to Satyam to the apex bank, its CMD, M D Mallya said.
We do not have any fund-based exposure to this company (Satyam), Mallya said. However, the lender has some current account deposits of Satyam.
Leading private-sector lender, ICICI Bank, is also believed to have provided the details to the RBI about its dealings with Satyam. [[News No 2.]]CARE has assigned ‘CARE A+’ rating to the proposed Rs 100 crore non convertible debentures issue of Bharati Shipyard Ltd, which is to say the NCDs offer adequate safety for timely servicing and carry low credit risk.
Further, CARE has reaffirmed the ‘CARE A+’ rating assigned to the long-term bank facilities of Bharati Shipyard. Also, CARE has reaffirmed the ‘PR1+’ rating to its short-term bank facilities. The short-term and long-term bank facilities aggregate Rs.3,031 crore, revised from Rs.3,116 crore.
The ratings derive strength from professionally qualified and experienced promoters as well as management, in-house vessel design capabilities of Bharati Shipyard, comfortable gearing level, stable profitability margins, strong order-book position demonstrating visibility in revenue and higher proportion of repeat orders in the order book.
However, the rating is constrained by project risk associated with the expansion projects, high working-capital requirement in the wake of increasing order book and competition from global players in the event of slowdown in the ship building activity.
The inherent cyclicality in the ship building sector, execution of huge order book within the timeframe in view of the possible delay in receipt of equipment for shipbuilding and the government decisions regarding continuation of subsidies are the key rating sensitivities.
Bharati Shipyard is engaged in design and construction of various types of sea-going vessels. Over the years, it has upgraded from manufacturing inland cargo barges and deep-sea trawlers to build tugs, sophisticated offshore support vessels and drilling rigs. BSL has its facilities located at Dabhol (Maharashtra), Ghodbunder (Thane), Ratnagiri (an EOU), Goa (an EOU) and Kolkatta.
The Dabhol and Mangalore yards are under implementation. Since 1987, the company built and delivered over 50 vessels, with 39 vessels being delivered in last nine years.
As on August 31, 2008, Bharati Shipyard had an order-book position of 54 vessels under construction, valued approximately at Rs.5,023 crore, to be executed over the next four years. The export orders constitute 70% of the total order size. [[News No 3.]]Bharat Forge, the countrys largest forgings company, has reviewed its earlier decision to issue non convertible debentures due to bad equity markets.
The Rs 400-crore debenture issue, with detachable warrants, was scheduled to be issued on a rights basis and would have funded Bharat Forges growth plans.
The decision to review the issue was taken at a board meeting on Friday, Bharat Forge said in a statement to the BSE.
Shares of Bharat Forge were up 0.3% to Rs 91.50 on the BSE in intra day trading.
Last month, the auto component maker had approved a proposal to raise Rs 250 crore through issue of debentures on a private placement basis to Life Insurance Corporation of India. [[News No 4.]]The board meeting of Rolta India will be held on 19 January 2009 to take record on the unaudited financial results for the quarter ended 31 December 2008 (Q2) of the financial year 2008-009. [[News No 5.]]KLG Systel has announced that the Power System Solution (PSS) division of the company has been awarded repeat order aggregating Rs 30.60 crore from Uttar Haryana Bijli Vitran Nigam (UHBVN) for EPC project.The company made this announcement during the trading hours today, 10 January 2009.#### Vijaya Bank has announced a reduction in its Benchmark Prime Lending Rate (BPLR) from 13.25 per cent to 12.75 per cent with effect from January 12, 2009.
While deciding on the BPLR, the Banks Asset Liability Management Committee also reviewed the interest rates offered on deposits of various maturities in the light of continued downward trends in benchmark rates, a release said.
Accordingly, interest rates on the Banks retail deposit schemes across various slabs have also been revised downwards in the range of 25 to 75 basis points.
"Our objective is to contribute progressively to a revival in the real economy. I expect the reduction in the BPLR to enable pick-up in credit, especially from the productive sectors as also the public at large," said Vijaya Bank CMD Albert Tauro in the release.