Finmin working on implications of 2G judgement
"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.