Banks bracing up for a massive spike in stressed loans after SC AGR order

Say loans may not immediately turn into bad debt, but a big chunk of it eventually could

With the Supreme Court adopting a tough stance on telecom dues, banks are bracing up for a massive spike in their stressed loans. “It is (now) for the telecom companies to provide what course of action to take,” said State Bank of India (SBI) Chairman Rajnish Kumar, on the sidelines of Nasscom summit.
 
The bank’s funded exposure to the telecom sector is around Rs 29,000 crore. On the non-funded front, it will be another Rs 14,000 to Rs 15,000 crore, Kumar said. According to Kumar, SBI had non-performing asset (NPA) of Rs 9,000 crore in the sector, which has