State Bank of India (SBI) is trading lower by 5% at Rs 1,975, declining 7% from day’s high of Rs 2,113 on worries over its exposure to telecom companies after the Supreme Court quashed all 122 spectrum licences granted to telecom companies after January 2008.
India’s largest lender has total exposure of Rs 23,068 crore in the telecommunication sector as on March 31, 2011.
Meanwhile, the deputy governor of the Reserve Bank of India said that the central bank was not considering any special dispensation to provisioning norms for banks' bad loans or non-performing assets (NPA)
The deputy governor will meet eight to 10 banks this month to get details on bad and restructured loans, a Reuters report suggests.
A combined 3.18 million shares have changed hands on the counter so far on the NSE and BSE.
