Mumbai: One day after the warning Kumar Mangalam Birla that the idea of ​​vodafone (vil) can reach “irreparable collapsing points” to be public, banks worry about the fate of the main telecommunications, they said, “too big to fail”.
The lenders both India and Global have a 1.8 lakh rs crore exposure.
Most of these are in the form of a guarantee.
Some personal lenders with funded exposure have begun to make provisions.
However, most exposure is with public sector banks.
If Vodafone fails to repay its contribution to the government and this guarantee is called, it will soon turn into debt and will soon be classified as an unworked asset.
Hit at Bank PSU will not be as big as their exposure because in recent years, lenders have demanded a much higher cash margin of Vodafone for their guarantees.
The IDBI Bank understood to have a margin of up to 40% for a guarantee that has been extended.
But even then it will be big enough to remove profits for many people.
For banks, debt recovery is a contingent on the remaining operational and retaining customers.
While the company continues to close to the four Indian markets, the situation can change overnight if there is a default.
According to bankers, the bankruptcy process can only work when there are buyers.
In the case of Vodafone, RS 53,000 CRORE AGR contributions (adjustable gross income) to the center are preventing.
This even though Birla is willing to write down the entire equity.
Government contributions cannot be avoided because the center cannot make an exception for one company.
Even in cases of bankruptcy, the Telecom Department has claimed its contributions as a financial creditor even though there is an effort to mark it as an operational creditor.
Uncertainty over dot claims, which has been experienced by lenders in the case of the bankruptcy of dependency communication, will make telecommunication resolution into a challenge.
Lenders do not want to risk bankruptcy because this will result out from customers who are cases with reliance communication.
Lenders say in addition to the company’s debt obligations equal to 1.5% of banking sector loans, VIL is a provider of large telecommunications infrastructure.
Some business applications running on their network and the company is one of the largest “Internet of Things” service providers.
Bank executives told TOI that bankruptcy would be the worst scenario because there was a risk of disrupted operating and migratory customers.
This is the case with reliance communication.
Vodafone, who accommodated 44.4% in Vil, has explained that it will not invest additional funds in India.
Responding to analyst queries, Vodafone Nick Read executive said that India was a question for Vodafone’s idea.
“We, as a group, try to give them as much practical support as we can.
But I want to make it very clear, we don’t put additional equity to India,” he said.
Not investing anymore: Global CEO Vodafonevodafone Nick Read said they would not plant more equity in a joint venture, when asked on the call analyst on July 23 about the problem in the idea of ​​Vodafone.