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February 14th, 2012
2G – SBI loss estimated to nearly 100crores

The Supreme Court on February 2 cancelled 122 2G licences granted during the tenure of former telecom minister A Raja declaring them as illegal

State Bank of India on Monday said the loss to it could be Rs 100 crore, in the worst case scenario, following the Supreme Court order cancelling 122 second generation mobile licences.

If you visualise the worst case scenario, the loss to the bank could not exceed, to my mind, Rs 100 crore, SBI Chairman Pratip Chaudhuri told reporters here after announcing its December quarter results.

SBI has a Rs 200-crore exposure distributed equally between two companies which entered the telecom fray in the spectrum allocation carried out in 2008, Chaudhuri said.

Of the two accounts, it considers one as the weakest but it has a guarantee, while in the case of the second company, it does not have adequate guarantee, he said.

However, Chaudhuri also said that even in the case of the latter, the bank believes the company is not weak and can pay back the loan amount through other sources.