State Bank of India (SBI), the country's top lender, is not worried about loans to telecom companies, whose licences have been cancelled, going bad as they may bid again, its deputy managing director Santosh Nair said.

Shares of SBI fell as much as 4% after India's Supreme Court revoked all 122 telecoms licences issued under a scandal-tainted 2008 sale.

The National Stock Exchange's banking index reversed losses and were trading flat. They were down nearly 2% just after the announcement.