Banks have a consolidated exposures of more than Rs 7,000 crore in Maytas Infra,

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Maytas Properties and other group companies. In addition to domestic borrowing, the companies have also raised a large amount from external commercial borrowings (ECBs), according to senior bankers.

Financial Chronicle could not ascertain the exact quantum of ECBs raised by the Hyderabad-based companies. Bankers preferred only to say the overseas borrowings were "substantial".

Major portion of banks' exposure is to Maytas Infra, an infrastructure development, construction and project management company floated by Ramalinga Raju and his family. His son Teja Raju is the promoter and vice-chairman of Maytas Infra.

About half of the domestic credit to the companies is a funded exposure where banks have lent credit to the company or its subsidiaries, while the remaining portion is a non-funded exposure where banks have extended letter of credit and other guarantees to Maytas Infra to raise money from other sources.

Among the leading lenders are State Bank of India (SBI), State Bank of Hyderabad, ICICI Bank, Punjab National Bank, HDFC Bank, Allahabad Bank, Axis Bank, Bank of India, Kotak Mahindra Bank, BNP Paribas, IDBI Bank, Bank of Maharashtra and Canara Bank.

As earlier reported by Financial Chronicle, a representative panel of banks are expected to meet Teja Raju next week before they start scrutinising the books of account of the company and assess the present and future assets of the project and also of the company.

When contacted by Financial Chronicle for details on individual bank exposures, all of them preferred to remain tight-lipped.

Earlier this week, SBI chairman OP Bhatt told the media that their exposure in Maytas Properties and Maytas Infra — both fund and non-fund — is less than Rs 500 crore.

Banks have funded some of the projects of the Maytas Infra, provided working capital loans and term loans. Besides, a good portion of their exposures is through letters of credit and other guarantees, but bankers say it still has to ascertain how much of their guarantees have been utilised by the company.

According to Maytas Infra's annual report, term loan from the banks are taken against present and movable assets of the company and guaranteed by the vice-chairman and promoter of the Maytas Infra, Teja Raju.

The term loans (not those from banks) of the company are taken by pledging the present and future assets of the project.