PSU banks Rs 14,000 cr in Telecom Cos in fix

PSU banks' exposure to telecoms over Rs 14,000 cr

Govt has said public sector banks have a total exposure of over Rs 14,000 crore to telecom companies whose licences have been cancelled by the Supreme Court though a bulk of the amount is backed by securities. Out of the total exposure of Rs 14,345 crore, only Rs 2,888 crore given to big companies, including Idea Cellular, Tata Telecom, Uninor and Videocon, is unsecured. "Rs 14,345 crore is total exposure to telecos ...Out of this Rs 2,888 is to big companies Idea, Tata Telecom, Uninor and Videocon which does not have security except telecom licence and assets created by these companies," Financial Services Secretary D K Mittal said on Friday. He further said that though the total funds provided by PSU banks to telecos hit by the Supreme Court order was Rs 14,345 crore, the amount involved in 122 cases was limited to Rs 3,299 crore and it is not a matter of concern. "Public sector banks have no exposure which is totally uncovered," he added. The Supreme Court on Thursday 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. Many of these large companies will not go out of operations following the Supreme Court order as they have valid licences in other circles, he said. In the case of Tata Teleservices, which has pan-India presence, only 3 licences were cancelled. The number of cancelled licenses was 9 in the case of Idea Cellular and 22 in case of Datacom Solution promoted by Videocon. As far as individual lenders are concerned, State Bank of India said it had a total exposure of Rs 4,500 crore in these telecom companies. Other lenders, including Punjab National Bank, Corporation Bank, Oriental Bank of Commerce, too have exposure in these telecom companies. Punjab National Bank (PNB) said its exposure for roll-out under 2G is limited to Rs 508 crore. However, the bank did not give any loan for seeking licence. Corporation Bank, said it has exposure of Rs 146 crore in one of the telcos hit by the order. "We have Rs 146 crore exposure to Videocon Mobile. Though it is a secured funding, we are a bit worried as to how it will pan out post the Supreme Court verdict," Corporation Bank Chairman and Managing Director Ajay Kumar had said.