Satyam, LIC in discussion on funding: Official

Scam-hit IT major Satyam Computer has initiated preliminary discussion with Life Insurance Corporation of India (LIC) on funding, a senior LIC official said.

"(We have held) informal talks but have not so far received any concrete proposal from Satyam," the official said here on condition of anonymity.

The life insurer was open to any viable proposal, the official said.

Satyam recently received loans of Rs 600 crore from IDBI Bank and Bank of Baroda, which has rendered it financially comfortable in the short term.

Satyam is understood to have pledged some part of its land bank with the two financial institutions and is open to the idea of doing so in the future as well, to raise loans.

The Hyderabad-based company has approached two more public sector banks and LIC for more funding to meet its short-term requirements such as salaries, and vendor and rental payments.

It is understood that Satyam still requires a similar amount in the near term.