Banks have already converted bad loans into equity. UK-based Vodafone holds 45 per cent stake in Vodafone Idea Limited, while the Aditya Birla Group holds 27 per cent.
Gross debt on Vodafone Idea Limited is Rs 1.8 lakh crore.
A consortium of banks led by State Bank of India (SBI) has told the Department of Telecommunications (DoT) that converting the debt of stressed telecom company Vodafone Idea Limited into equity could be an option to get the company out of trouble. Is.
As on 31 March 2021, the gross debt on Vodafone Idea Limited was Rs 1.8 lakh crore. Eight banks including SBI owe thousands of crores to the company. According to the Nomura report, IDFC First Bank, YES Bank and IndusInd Bank have the highest loan exposure. SBI has given maximum loan of 11 thousand crores. The dues of IDFC Bank are 3240 crores, Yes Bank 4000 crores, Punjab National Bank 3000 crores, Axis Bank 1300 crores, ICICI Bank 1700 crores and HDFC Bank 1000 crores.
There was discussion about AGR dues
The DoT had on Friday called senior bank officials to discuss the challenges arising out of the Supreme Court order on arrears related to Adjusted Gross Revenue (AGR) payable by telecom companies including Vodafone Idea and Bharti Airtel. The Supreme Court has given 10 years to telecom service providers to clear AGR dues of Rs 93,520 crore.
Banks told that this is not a permanent solution
Bank officials also told senior DoT officials that converting VIL’s loan into equity is an option, but it is not a permanent solution. Sources said that since VIL has not defaulted on its loan repayment so far, they cannot take any action at the moment.
Vodafone holds 45% stake in VIL
Banks have converted loans of several stressed companies into equity in the past. According to sources, bankers said that in the current scenario, capital investment by promoters is the best option. UK-based Vodafone holds 45 per cent stake in VIL, while Aditya Birla Group holds 27 per cent. Public and private sector lenders are expected to lose Rs 1.8 lakh crore in the event of VIL’s failure.
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