The government on Friday said that the cancellation of 2G licences following the Supreme Court’s February 2 verdict did not have any material impact on public sector banks (PSBs).

"The cancellation of (2G) licences does not have any material impact on public sector banks," 

"The cancelled licences represent certain circle or areas only. Most of the loan accounts were regular as on February 1, 2012, and by and large secured in the form of various tangible and other securities," he said.

In a significant judgment the apex court last month cancelled all the 122 spectrum licences allotted in 2008 during the tenure of former telecom minister A Raja, directing Telecom Regulatory Authority of India (Trai) to make fresh recommendations on allocation of 2G licences. The allocation of these licences was believed to be rigged.

He also said that government is closely monitoring the financial impact of the order of the Supreme Court on the banking sector in general and PSBs in particular. PSBs have sanctioned loans aggregating Rs 18,571.24 crore to nine companies affected by 2G verdict.

“Of this PSBs sanctioned Rs 6,664.20 crore to Idea Cellular, Rs 4,146.62 crore to Tata Teleservices Ltd and Rs 3,220 crore to Videocon Telecommunicatiions Ltd”, he said.