 "SBI to lend Rs 3k cr to telecom players for spectrum buy")
State Bank of India (SBI), the country's largest bank, expects to lend up to Rs 3,000 crore to the telecom players who are bidding for spectrum, for ramping up operations.
"The spectrum is to be pledged with us. This is one of the conditions in loan agreement. We are focusing only on top players and have done much thorough due diligence," a top SBI executive said.
"Compared to the spectrum bidding round in 2010, the players are in a better position (financially). While total payments (for spectrum) are expected to cross Rs 50,000 crore, the immediate payments are pegged at Rs 12-13,000 crore. The balance money is to be paid in instalments. So the pressure is less."
A senior IDBI Bank executive said with consolidation in the sector, in-house cleaning and policy clarity, banks are comfortable with lending to telecom services players. "Lenders are not overexposed to the telecom sector they way they are to the power sector. The main issue in the telecom sector was policy uncertainty. Now, that has been led to rest," the executive said.
According to Reserve Bank of India data, total advances to the telecom sector stood at Rs 85,900 crore at the end of December 2013.
"The spectrum is to be pledged with us. This is one of the conditions in loan agreement. We are focusing only on top players and have done much thorough due diligence," a top SBI executive said.
"Compared to the spectrum bidding round in 2010, the players are in a better position (financially). While total payments (for spectrum) are expected to cross Rs 50,000 crore, the immediate payments are pegged at Rs 12-13,000 crore. The balance money is to be paid in instalments. So the pressure is less."
A senior IDBI Bank executive said with consolidation in the sector, in-house cleaning and policy clarity, banks are comfortable with lending to telecom services players. "Lenders are not overexposed to the telecom sector they way they are to the power sector. The main issue in the telecom sector was policy uncertainty. Now, that has been led to rest," the executive said.
According to Reserve Bank of India data, total advances to the telecom sector stood at Rs 85,900 crore at the end of December 2013.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%