SBI says funded exposure of Rs 1100 cr to telecom sector

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SBI says funded exposure of Rs 1100 cr to telecom sector

In an interview to CNBC-TV18, Santosh Nair, Deputy Managing Director of SBI, "This is basically guarantees issued for the license; if the licenses are cancelled these guarantees will also stand cancelled. So the net fund based will be about Rs 1100 crore. Many of the companies probably will also get refund of the license money they have paid."

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about SBI See previous management interviews See what other Experts & Brokerages are saying about SBI

After the Supreme Court verdict on the 2G telecom scam, some of the PSU banks look worried. Country's largest lender State Bank of India has funded exposure of Rs 1100 crore while non-fund exposure stands at Rs 3,400 crore.

In an interview to CNBC-TV18, Santosh Nair, Deputy Managing Director of SBI, "This is basically guarantees issued for the license; if the licenses are cancelled these guarantees will also stand cancelled. So the net fund based will be about Rs 1100 crore. Many of the companies probably will also get refund of the license money they have paid."

Nair explains there are some of the companies like Tata Tele who have got licenses pre-2008, so a few of their license have been cancelled but the other operation doesn't get affected because the capex plan will go on.

On an optimistic note, he is expecting the companies to rebid.

Meanwhile, sources close to the development say that PNB has exposure to most companies that got 2G license in 2008.

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