New Delhi: 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.
Following the Supreme Court order, Bank of Baroda said that the bank did not fund affected telecom companies. "We have not funded any of the 2G licence holders," Bank of Baroda Executive Director RK Bakshi said.
Even Axis Bank said the bank does not have any exposure to companies for acquisition of the 2G licenses or for the rollout of services on these licenses.
Another private sector lender, IndusInd Bank, also said it has not disbursed loans to telecom companies named in the order.
Earlier during the day, the Supreme Court 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.
The apex court also imposed a fine of Rs 5 crore each on three telecom companies, which offloaded their shares after getting the licenses and directed regulator Telecom Regulatory Authority of India (TRAI) to make fresh recommendations on allocation of 2G licences.
Meanwhile, a senior executive at IDBI Bank said it did not have "much of exposure" to the affected companies.
According to a Central Bank of India official, the Supreme Court verdict will not have any impact on the bank's balance sheet. He did not reveal the total exposure to the sector.
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