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Indian Banks risk on Rs 1.5 lakh crore lent to telecom sector

Indian Banks risk on Rs 1.5 lakh crore lent to telecom sector

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  18 Jan 2020 7:43 AM GMT

New Delhi: The risk for Indian banks on their loans to the telecom sector appear to have risen a notch higher for both public and private sector lenders who have a combined exposure of Rs 1.51 lakh crore, following the Supreme Court rejecting the review petition of the three incumbent telcos.

The apex court has mandated that Airtel, Vodafone Idea and Tata Teleservices pay nearly Rs 1.02 lakh crore as a statutory payment to the government by January 23.

According to banking sources, state-run State Bank of India (Rs 42,400 crore), HDFC Bank (Rs 24,500 crore), Axis Bank (16,600 crore), Bank of Baroda (Rs 14,400 crore), Indusind Bank (Rs 8800 crore), Canara Bank (Rs 6,100 crore) and Punjab National Bank (Rs 8,400 crore) have high exposures to the telecom sector.

These debts, however, are not classed as non-performing assets (NPAs or bad loans).

Banks don’t reveal client-specific information and queries sent to them on their loans disbursed to the telecom sector did not elicit any response.

The Union Bank of India which has loaned Rs 15,200 crore to the sector said it does not have any outstanding on account of Airtel or Vodafone Idea. Bank CMD Raj Kiran Rai its exposure is among the public sector undertakings (PSUs) and not in the privately-run Airtel and Vodafone Idea.

Kotak Mahindra Bank and Federal Bank have Rs 4,700 crore and Rs 1,600 crore exposure to the telecom sector, while RBL Bank has lent the telcos Rs 500 crore

There are other telecom companies who have to pay dues to the Department of Telecom but are defunct now or have been acquired. (IANS)

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