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Last Updated : Feb 16, 2020 01:20 PM IST | Source: Moneycontrol.com

Banking wrap: SBI says banks to pay price if any telco files for bankruptcy; Yes Bank in talks with investors for fund raising

Updates from the banking sector: RBI MPC may extend pause on inflation concerns; ESAF SFB hunts for marquee investors for pre-IPO fund raising



Banks that have exposure to the troubled telecom industry in the country, may get affected if any of the top players file for bankruptcy as they failed to get relief from the Supreme Court of India (SC) in the Adjusted Gross Revenue (AGR) matter.


Other than the State Bank of India (SBI), lenders like ICICI Bank, Punjab National Bank (PNB), Yes Bank and IDBI Bank also have exposure to Vodafone Idea.


So far, banks have said that loans to the affected telecom companies were standard and did not need extra provisioning.


Banks will have to pay price if any telecom company files for bankruptcy: SBI Chairman


SBI Chairman Rajnish Kumar, on February 15, said that banks will "have to pay the price" in case any telecom firm files for bankruptcy. This came a day after the Supreme Court made it clear that telecom companies will have to pay the Rs 1.47 lakh crore in past dues.


He said that the bank is in "wait-and-watch mode" and the onus of ensuring telecom companies' compliance with the Supreme Court order lies with the Department of Telecommunications (DoT) under the government.


Struggling Yes Bank delays Q3 results but says it has 'prominent' investors lined up


Yes Bank on February 12 said it has received non-binding expressions of interests (EOIs) and is currently in discussion with “several prominent investors” for capital raising.


The private lender also informed exchanges that the third-quarter earnings will be delayed beyond the regulatory time frame.


RBI MPC likely to extend pause as January CPI data stokes concerns


The Reserve Bank of India (RBI) is likely to keep rates unchanged in the April policy review as the country's retail inflation rose above the Monetary Policy Committee's target for the second month in a row.


Deposit rates likely to ease on RBI measures, but concerns on credit pick-up remain


Interest rates on deposits are likely to ease further going ahead after the RBI skipped policy rate cut and introduced liquidity boosting measures to support growth. While transmission of the lower cost of funds is expected to bring down lending rates, it may not be enough to revive credit demand.


ESAF Small Finance Bank hunts for investors ahead of IPO


ESAF Small Finance Bank is looking to bring big names on board before its IPO hits the markets in the first quarter of next financial year.

The Kerala-based bank had filed draft papers in January and plans to raise up to Rs 300 crore in a pre-IPO placement. It is yet to receive regulatory approval for the issue.



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First Published on Feb 16, 2020 01:20 pm
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