NEWS & ADVICE : CREDIT CARDS
Banks reduce credit limits for Satyamites
By Ankit Sharma
Jan 13, 2009
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The employees of Satyam Computer's- called ‘Satyamites' who were already facing woes inside the office are also feeling the same hitch outside as banks have reduced the credit as well as cash limits on their credit cards.

Country's leading private lenders, ICICI Bank and HDFC Bank, have cut down the credit limits of unfortunate Satyamites and sources inform that others like HSBC and Citibank have also followed the leaders and made a similar move.

A Satyam employee, Mr Sanatan, whose credit limit has been cut by ICICI from Rs 2 lakh to Rs 40,000 said, "While we are in complete uncertainty over our job and salary, the message on cut in credit limit on my ICICI card has added insult to injury."

ICICI Bank has agreed to have taken such a move but they claim it to be a "precautionary" measure in the wake of Satyam's turndown. "While we have nothing against Satyam employees, it is true that the credit has been cut," said an official of ICICI Bank.

"We are also answerable to our shareholders. Credit card is an unsecured loan. If there is a possibility of default between a housing/auto loan and a credit card payment, the latter will be stopped," added the official.

Similarly another senior employee's credit limit has been reduced from Rs 3 lakh to less than Rs 2 lakh by his issuer, HDFC Bank. The bank has informed the cardholder about the same.

Yet another staff member of Satyam faced a great humiliation when his HSBC card was rejected while making a payment at supermarket. "I have no intimation on this and am shocked how things can go wrong all of a sudden," told the employee.

At the same time banks operating the salary accounts of Satyam's staff have directed their employees to "keep in view" of the dues of Satyamites in advance before crediting the next salary.

Bankers tend to be cautious while handling their customers if the source of income is uncertain.

 


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