Full News
In Sep'16 Airtel owed 9.8Kharab,Idea owed 3.7kharab to banks
In Sep'16 Airtel owed 9.8Kharab,Idea owed 3.7kharab to banks
Thats overwhelming.... its been reported that Indian telecom industry stands beleaguered with a staggering loan of Rs21.4Kharab (figure of Sep 2016). The condition may worsen further as the industry's interest coverage ratio is getting below 1. Which means that the industry is not able to pay its full interest out of its operating profit. Cautious Central Bank (RBI) has directed banks to make provisions at a higher rate for this sector.
Do you know, that 60% of bank stress is caused by five sectors. These five sectors are:
- Infrastructure
- Steel
- Textiles
- Power and
- Telecom.
But, RBI has singled out telecom sector, which is particularly interesting.
The central bank has been warning about the telecom sector for quite some time.
And now it has issued a notification which has asked the bank boards:
- to review the telecom sector loan by June 30.
- And consider making provisions for standard assets in telecom sector at higher rates so that necessary resilience is built in the balance sheets should the stress reflect on the quality of exposure to the sector at a future date.
- Besides, banks should also subject the exposure to the sector to closer monitoring,” the RBI notification said.
The fact is that on Sep 2016 the Telecom industry owed Rs21.4Kharab; And the break up is:
- Bharti Airtel .... 9.88 Kharab
- Idea Cellullar ... 3.79 Kharab
- R Com ....3.24 Kharab
- MTNL ... 1.28 Kharab
- Tata Tele ... 1.02 Kharab
- Tata Comm ... 1.02 Kharab
- Others ... 1.21 Kharab
And RBI is very concerned with this outstanding amount.
