SBI prepared for the worst, says Rajnish Kumar
After the Supreme Courtroom ordered telecom firms to pay their adjusted gross income (AGR) dues instantly, State Financial institution of India (SBI) chairman Rajnish Kumar has reportedly stated the financial institution was ready for the worst. He stated that the banks will converse to telcos about their publicity and hope they’ve some plans for it.
“Telecom firms have to speak to the federal government. We’ll discuss to them and I’m certain they are going to be having plans,” Kumar stated talking on the sidelines of an occasion organised by the Nasscom in Mumbai.
Kumar’s feedback got here after the Supreme Courtroom made it clear that telecom firms must pay the Rs 1.47 lakh crore in AGR dues. State Financial institution of India (SBI), the nation’s largest lender, has practically Rs 29,000 crore mortgage publicity in telecom sector, the very best amongst Indian banks. Other than this, SBI has an extra Rs 14,000 crore in non-fund primarily based publicity which is able to devolve provided that there’s a non-payment of dues.
“Our publicity to them is Rs 29,000 crore. After this order we are going to ask them what their plans are to adjust to the order and no matter is the state of affairs, we’re able to dealing with,” Kumar added.
Additionally Learn: Panic, confusion and cost guarantees from telcos after Supreme Courtroom’s AGR blow?
In a large blow to telecom firms, the Supreme Courtroom on Friday rapped the DoT desk officer for scuttling SC’s unique AGR order which requested the telecom operators to pay up their dues of Rs 1.47 lakh crore by January 23. DoT desk officer had requested circle head to not take any coercive motion in opposition to telcos in contravention of the SC judgement. The court docket additionally pulled up Bharti Airtel and Vodafone Concept for not paying their AGR dues to the Division of Telecommunications (DoT).
In October final 12 months, the apex court docket had ordered operators to pay Rs 1.47 lakh crore in statutory dues by January 23. A evaluation petition in opposition to the order was rejected on January 16.
Additionally Learn: AGR case: What the telcos needed vs what they obtained
In keeping with business specialists, banks could be severely impacted if their publicity to telecom turns non-performing belongings after the Supreme Courtroom newest order.
As of now, solely Mukesh Ambani’s Reliance Jio has paid its AGR dues of Rs 60 crore. Whereas Vodafone Concept owes over Rs 53,038 crore to DoT, Bharti Airtel has dues of Rs 35,600 crore. Tata Teleservices has to pay Rs 14,000 crore.
In the meantime, Bharti Airtel has knowledgeable the DoT that it will deposit Rs 10,000 crore by February 20, and the remaining quantity will likely be paid earlier than the subsequent listening to date – that’s March 17. Airtel stated that its funds pertain to group firms corresponding to Bharti Airtel, Bharti Hexacom and Telenor India.
By Chitranjan Kumar with PTI inputs