BUSINESS

Three banks have ‘operational exposure’ to Satyam Computer

Special Correspondent

RBI submits preliminary details to Central Government



Banks tread cautiously

on the issue.



HYDERABAD: Satyam Computer Services offers internet banking and remittance software to State Bank of India (SBI). Core banking solutions of Punjab and Sind Bank too are provided by Satyam, while treasury management services of Syndicate Bank are managed by the company.

That whether the extent of dependence of these banks on Satyam is full or partial could not be established. The details of ‘operational exposure’ of these banks were sought and collected by the Reserve Bank of India (RBI). The RBI is understood to have been satisfied with the steps being taken by the three banks to check for any possible disruptions.

“SBI possesses the source codes which should make it possible for the bank to use the services of another provider, if required,” the RBI told the Union Government.

RBI Governor D. Subba Rao was asked by the Government to submit a report on the various issues, including exposure of banks to the company’s funds and also the software solutions. The apex bank reportedly submitted a report to the Government on this with preliminary details on Wednesday, according to RBI sources.

A senior official in SBI, when asked about the IT exposure of the bank with Satyam, said that the bank had some level of dependency with Satyam’s IT solutions, though he declined to divulge more information. The other banks too are said to be treading cautiously on the issue.

However, a Satyam spokesperson said that as part of business continuity efforts, all concerned were making sure that the IT services offered to several organisations did not suffer and the technology support was constant. The company was offering services to several other organisations and there were no delivery issues with any of them.

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