Under the relief package, all telecom companies including Vodafone Idea got a four-year moratorium on regulatory dues. Vodafone Idea will get the most benefit from this. This relief to the company will have a very positive effect on the banking sector. Dozens of banks including SBI, PNB have given loans of thousands of crores to the company, whose expectation of return has increased.
As of 31 March 2021, the gross liability on Vodafone Idea was 1.9 lakh crores. A total of eight banks have a total outstanding of about 48000 crores on the company. The company has taken direct loan of 23 thousand crores from different banks. The remaining 25 thousand crores are guaranteed by banks. According to Mint’s report, Vodafone Idea has to return Rs 9000 crore to the banks in the current financial year i.e. by 31 March 2022. It also includes non convertible debentures of 5000 crores. Banks expect that Vodafone Idea will be able to raise investments of about Rs 15-20 thousand crore this year due to the automatic route clearing the way for 100% FDI.
6-6 thousand crores to be paid every year
It is believed that the company will have to repay about Rs 6000 crores every year in the form of debt for the next two years. Here, due to the moratorium of four years, the gross liability of the company will increase significantly. According to the Nomura report, the annual liability for Vodafone Idea is currently close to 24800 crores. After four years, this liability will increase to Rs 43000 crore. The total dues of the government, including spectrum usage charges, AGR dues, is close to 1.6 lakh crores, which will increase to 2.2 lakh crores after four years of moratorium.
Big relief by removing the provision of bank guarantee
According to Nomura’s report, when spectrum auctions take place in the future, telcos will not need bank guarantees. Companies can use a single bank guarantee for different licenses. This is a big relief for this sector. It is believed that in the coming days, all three telecom companies will get relief of about 80 thousand crores in the form of bank guarantee.
SBI has given 11 thousand crores
SBI has given a loan of 11000 crores to Vodafone Idea. This is 0.50 percent of SBI’s loan book. IDFC First Bank has given a loan of 3240 crores, which is about 3 percent of its loan book. Yes Bank has given a loan of 4000 crores, which is about 2.4 percent of its loan book. Punjab National Bank has given a loan of 3000 crores, which is about 0.50 percent of its loan book.
Axis Bank has given 1300 crores
Axis Bank has given a loan of 1300 crores, which is about 0.20 percent of its loan book. ICICI Bank has given a loan of 1700 crores, which is 0.20 percent of its loan book. HDFC Bank has given a loan of 1000 crores which is 0.10 percent of its loan book. IndusInd Bank has given a loan of 3500 crores to the company. Please tell that this report has been prepared by Nomura.
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