Telecom

RBI seeks govt relief for telecom firms to avoid bad loans, says report

Updated : January 20, 2020 07:44 AM IST

The outstanding loans to the telecom sector stands at Rs 1.47 lakh crore.

While Bharti Airtel faces a liability of around Rs 42,000 crore after including licence fees and spectrum usage charges, Vodafone-Idea may have to pay about Rs 40,000 crore.

The central bank has asked the government to provide relief to telecom operators as the Supreme Court verdict on adjusted gross revenues (AGR) is likely to create bad loans on banks' books, ET Now reported.

“RBI has asked the government to consider a moratorium on the AGR,” the ET Now reported quoting people aware of the development. “Lenders like YES Bank, IndusInd Bank, SBI, ICICI Bank and PNB appear to have high exposures to Vodafone Idea,” an Economic Times report quoted analysts Vishal Goyal and Ishank Kumar of UBS writing in a note.

The outstanding loans to the telecom sector stands at Rs 1.47 lakh crore. The operators have January 23 deadline to pay back their dues.

While Bharti Airtel faces a liability of around Rs 42,000 crore after including licence fees and spectrum usage charges, Vodafone-Idea may have to pay about Rs 40,000 crore. Jio may have to pay around Rs 14 crore.

RBI seeks govt relief for telecom firms to avoid bad loans, says report

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