Click to play videoNew Delhi: Information Technology veteran and Satyam Computer’s new Director Kiran Karnik on Wednesday made it clear that the troubled company needs a loan and not a government bailout.
"I don't think we need any Government grant or bailout package. If a bank gives money we are comfortable. We will be happy to get money from wherever but this (Satyam Computers Services Ltd) is a very bankable proposition from the balance sheet and account statements,” said Karnik, who is a former Nasscom president.
Satyam — counting Fortune 500 companies like General Electric, Nestle and British Petroleum among its clients — is capable of bouncing back on its feet.
Since its chairman Ramalinga Raju admitted to committing India's biggest fraud, the IT giant is desperately in need of cash to pay its 53,000 employees and keep the company afloat.
On Monday, government sources indicated that they would bail out the company but CNN-BN has learnt that it will only play facilitator, organising short-term loans which Satyam desperately needs.
Satyam has to declare its third quarter results by the end of this month but the company is far from ready, so it will need government help.
“We are discussing with the government and the Law Board as to whether in this situation we can defer them,” Karnik said.
In the current circumstances the regulators might excuse them, but the bigger issue is really funds.
With the government bailout looking bleak, the company might have to turn to big investors like ICICI, LIC and HDFC for a loan to tide over.
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