State Bank of Hyderabad (SBH) is likely to consider a one-time settlement offer by Maytas Infra. The Hyderabad-based associate bank of the State Bank of India is one of the lenders which has agreed to restructure the cash-crunched infrastructure company’s debt.

“We are weighing the pros and cons of the settlement. If terms and conditions are favourable, we might accept it. So, it entirely depends on them (Maytas Infra),” SBH managing director Renu Challu told Financial Chronicle.

She conceded the bank had been approached by Maytas Infra with a settlement offer. “They have approached us. We are still to take a final call on the matter,” Challu said.

At present, SBH is party to the corporate debt restructuring programme worked out to end Maytas’ debt woes. The latter owes Rs 189 crore to the bank at present. Maytas had borrowed money from SBH for specific projects in the form of secured loans.

Other major lenders to Maytas Infra include State Bank of India, IDBI Bank, Indian Overseas Bank, Punjab National Bank, HDFC Bank, Axis Bank and Standard Chartered Bank.

While some banks have agreed to a one-time settlement with the company, a majority have opted to restructure their loans and take equity in lieu of their outstanding amounts.

Maytas Infra has executed one-time settlements with two banks for a total amount of Rs 50.99 crore during the first quarter of financial year 2011.

Recently, the company had communicated to the Bombay Stock Exchange, as part of its financial results, that it was pursuing such agreements with some more banks. According to the agreement, Maytas Infra has to pay 50 per cent of the principal amount outstanding as on January 1, 2009.

The balance of the principal amount and interest from the same period till the date of payment would be waived off.