SBI to finance Telecom cos opting for 3G spectrum
Public sector lender State Bank of India (SBI) said it has set aside Rs 20,000 crore for financing some of the Telecom companies that have recently won the bids for 3G spectrum.india Updated: May 22, 2010 21:48 IST
Public sector lender State Bank of India (SBI) said it has set aside Rs 20,000 crore for financing some of the Telecom companies that have recently won the bids for 3G spectrum.
The lending will reduce the bank's liquidity to Rs 20,000 crore, SBI Chairman O P Bhat said.
"SBI has a liquidity of roughly Rs 40,000 crore and assuming there's no further outgo other than the Rs 20,000 crore earmarked for telecom operators, the Bank will be left with 50 per cent of its existing liquidity," Bhat told media
persons on the sidelines of SBI branch inauguration at the Rajiv Gandhi International Airport in Shamshabad here today.
He, however, did not divulge the names of the Telecom companies that have approached the bank for funding.
The deadline for the telecom operators to pay the license fee for the 3G Spectrum money is May 31. The telcom companies will have to cough up Rs 67,719 crore as the fee.
Earlier, he said the situation may create some temporary liquidity crunch owing to the funding to the telecom operators.
Bhat said the credit growth of the bank, which is expected to grow by about 20 per cent in the current fiscal, is likely to see more traction from the retail segment including home and auto loans.