2G verdict: Fin min working on implications for banks

India's largest public sector-bank SBI has an exposure of almost Rs 1,100 crores in telecom companies affected by judgment

PTI | February 2, 2012



The finance ministry is working out the financial implication of the supreme court judgement to cancel 122 telecom licences on the banking sector.

"We have to see the implication. Officers are working on the impact of judgement on the banks...we will soon have a clear picture," a senior finance ministry official said.

Several lenders including the State Bank of India, ICICI Bank, Punjab National Bank and IDBI Bank have extended credit to the telecom companies whose licences have been cancelled.

The supreme court earlier in the day cancelled 122 2G spectrum licences granted by former telecom minister A Raja on the ground that they were issued in a "totally arbitrary and unconstitutional" manner.

Imposing a fine of Rs 5 crore each on three telecom companies which offloaded their shares after getting the licenses, the court directed regulator telecom regulatory authority of India (Trai) to make fresh recommendations on allocation of 2G licences.

Earlier in the day, finance minister Pranab Mukherjee said "judgements have come and we will have to examine judgements and its implications. Government will examine it".

Banks have varied exposure to the telecom companies involved in the case.

Country's largest lender State Bank of India (SBI) said the bank has fund-based exposure of Rs 1,100 crore in telecom companies affected by the apex court order.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter