Banks may hold back on fresh loans to Vodafone Idea as AGR clouds linger

Supreme Court (SC) had dismissed petitions by telecom companies Vi and Airtel seeking a waiver on paying interest, penalty, and interest on penalty components as part of their long-standing AGR dues

Public sector lenders are unwilling to give fresh loans to the cash-strapped Vodafone Idea (Vi) after the Supreme Court (SC) last month dismissed a plea by telecommunications (telecom) companies seeking a waiver on pending adjusted gross revenue (AGR) dues, three senior bank executives said.

 

“We have not engaged with the government on this matter and currently have no plans to do so. There are no intentions at this time to give any relaxations on the pending dues of Vi or provide any fresh loans to the company,” said a senior bank executive.

 

Vi Chief Executive Officer