Loan recast, fund infusion by promoters key to keep Vodafone-Idea afloat

Analysts say restructuring of bank loans under June 7, 2019 norms possible if only promoters agree to bring cash to the table or a new investor

Just as the verdict on AGR (adjusted gross revenue) was pronounced by the Supreme Court, Vodafone Idea’s (VIL) stock plunged over 14 per cent intraday, and along with it took the Nifty Bank index and the two key private sector bank stocks — IndusInd Bank and IDFC First Bank.

While IndusInd Bank's stock recouped much of the losses subsequently, IDFC First Bank didn’t find similar luck. Ironically, IDFC First Bank has the highest provisioning (70 per cent of loan outstanding) among those exposed to VIL. “Since some of the banks have made provisioning towards VIL in varying measures, the AGR verdict