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

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

Topics
Debt recast | Vodafone Idea | Adjusted gross revenue

Hamsini Karthik  |  Mumbai 

Just as the verdict on AGR (adjusted gross revenue) was pronounced by the Supreme Court, Vodafone Idea’s (VIL) stock plunged to over 14 per cent intra-day, 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 much 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 ...
First Published: Tue, September 01 2020. 20:04 IST