Although formal talks with the telco have not yet begun, senior executives at major public sector banks said the government’s AGR embargo on Vodafone Idea has provided some reassurance. They added that this has eased concerns around any incremental exposure. According to the lenders, the reprieve might make new funding proposals more feasible.
“After the government's decision, things have improved,” a lender with a sizable PSB stated. “This is a positive development,” another banker verified that the situation is improving now and that they would evaluate it further.
Vodafone Idea has been in negotiations to fund approximately Rs. 25,000 crore, and public sector banks may assess involvement following a thorough examination of the government's directive.
However, considering the company's ongoing decline in customers and revenue market share over the previous few quarters, some banks would likely adopt a cautious stance.
Also Read: Vodafone Idea Shares Jump 4% on Hopes of AGR Relief; Government Signals Assessment Underway
The SBI-led consortium’s total exposure to the company stands at Rs. 11,000 crore, comprising term loans and working capital loans across both fund-based and non-fund-based exposures.
However, Vi owes the government Rs. 1.9 lakh crore for spectrum and AGR out of its overall debt of Rs. 2.17 lakh crore.