New Delhi: State Bank of India on Thursday said it does not have any non-performing asset (NPA) in the telecom sector as the loans were given to well known corporate houses against their group guarantees.

"All the loans which we have given are to large well known corporates against their group guarantees...There is not a single NPA in the telecom sector and in the 2G sector in this bank or for any other banking system," Santosh Nayar, Deputy MD Corporate Banking of SBI told a television channel.

He said these corporates have the ability to "raise cash elsewhere and pay".

"The only thing what happens is since they have invested money in this 2G rollouts, they would have taken money from other group businesses and those businesses could come under some sort of strain," he said.

The Bank's exposure to the sector assumes significance in the light of the Supreme Court on February 2 cancelling telecom licences of nine companies.

Meanwhile, discussions are on at the government level to facilitate secured bank loans for telecom companies which will participate in the upcoming spectrum auction and the modalities in this regard are expected to be finalised within a couple of weeks.


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