Banks exposure to telcos at R28k cr for 2G: Pranab

Written by Press Trust of India | New Delhi | Updated: Mar 31 2012, 06:15am hrs
Banks have a total exposure of about R28,000 crore to telecom companies for activities relating to licence fee and roll out of 2G services, the government said on Friday.

The banks' total outstanding exposure to companies for 2G related activities (including licence fees, roll out of 2G services, erection of towers, capital expenditure and other operational expenditures) as on December 2011 stood at about R19,135 crore in respect of public sector banks and about R8,803 crore in respect of private sector banks.

These include exposures to companies whose licensed have been cancelled, finance minister Pranab Mukherjee said in a reply in the Lok Sabha on Friday.

He added that most of these loan accounts were regular as of February 1, 2012 and by and large secured in the form of various tangible and other securities.

Also, he said, the outstanding credit from PSBs and private sector banks to the entire telecom sector stood at R76,977 crore as on December, 2011.

To another written reply in the lower house, minister of state for finance Namo Narain Meena said that as reported by RBI, that as of December 2011, total outstanding credit to the power sector exposure stood at R2,62,532 crore.

The amount includes loans from State Bank Group, private sector lenders and foreign banks.