ICICI Bank seeks board seat on Maytas Infra

ICICI, the country’s second largest bank, has sought a seat on the board of Maytas Infrastructure, a firm promoted by the defamed founder of Satyam Computer Services B Ramalinga Raju and his family. “We have sent a formal proposal to the Maytas board seeking a representation on the board,” said a spokesperson of ICICI. The board has forwarded the proposal to the Company Law Board that had appointed government nominees in Maytas Infra after the Satyam scam. ICICI and a clutch of other of banks, including State Bank of India (SBI), IDBI, Hong Kong and Shanghai Banking Corporation (HSBC), Citibank and HDFC Bank Ltd are understood to have an exposure of over Rs 5,000 crore in Maytas Infra. But the company has been unable to repay these loans as many of the projects are in a limbo. Banks and financial institutions together hold a 22.69% in Maytas Infra. ICICI is understood to have sought a board seat to hedge its exposure to Maytas Infra. The request comes close on the heels to the Maytas Board approving a Rs 1,700 crore corporate debt restructuring plan. SBI Capital Markets has been mandated to restructure the dues.