Satyam pledges land to secure Rs 600-cr loan

IDBI Bank, Bank of Baroda and LIC have sanctioned short-term loans worth Rs 600 crore to beleaguered IT major Satyam Computer, which has pledged a part of its land-bank for this purpose.
    
Confirming the development, sources told PTI today that certain formalities were yet to be completed, after which the loans would be disbursed.
    
IDBI Bank has agreed to provide Rs 200-300 crore of the Rs 600-crore loan, while Bank of Baroda and LIC will lend the balance.
    
This will help the scam-hit Satyam meet its immediate expenses including payment of salaries to its employees, rentals for its office premises and payments to vendors, among other things.
    
Satyam is understood to have pledged a part of its huge land-bank in Hyderabad, estimated to be worth between Rs 1,500-Rs 1,700-crore as security to the lenders.