The lenders to debt-ridden Vodafone Idea seem to have turned cautious as many banks have made provisioning for the telecom account during the September quarter (Q2FY22). ET Now learns that private lender IndusInd Bank has made 100 per cent contingent provisioning for their funded exposure of Rs 995 crore in Vodafone Idea.
The lender has overall exposure of Rs 3,200 crore in Vodafone Idea which includes funded exposure of Rs 995 crore and remaining non-funded exposure of around Rs 2,200 crore. Similarly, another private lender Yes Bank has made Rs 336 crore provisioning on account of Vodafone Idea during the September quarter. The lender said it has provided for an overall 10 per cent exposure for the telecom account. Banks have also maintained that Vodafone Idea remains a standard account in their books.
“Government may have given some cushion to Vodafone Idea, but we need to take a call according to our assumptions,” a senior bank official said. “The steps taken for Vodafone are part of prudent provisioning,” he further added.
The largest lender, the State Bank of India (SBI), may also provide for the ailing telecom company. ET Now learns that SBI is likely to make a provision of 5-15 per cent towards their exposure in Vodafone idea. Public sector bank has exposure of around Rs 11,000 crore in Vodafone Idea. The lender is set to announce its quarterly earnings (Q2FY21) on November 3, 2021.
The lenders have been pushing the telecom company to raise funds to start clearing its upcoming financial dues starting December. Kotak Securities estimates Vodafone Idea’s annual payout towards interest on bank loans at Rs 2,600 crore. The telco is also staring at a Rs 6,000 crore payout towards the redemption of non-convertible debentures (NCDs) starting December 2021.
Vodafone Idea Exposure to Banks:
Lenders Exposure
SBI 11,000
Yes Bank 4000
IDFC First 3240
IndusInd Bank 3500
PNB 3000
Axis Bank 1300
ICICI Bank 1700
HDFC Bank 1000
Source: Nomura
Figures in Rs Cr
