Banks will have to pay price if any telecom firm files for bankruptcy

New Delhi: SBI Chairman Rajnish Kumar on Saturday said banks will "have to pay the price" in case any telecom firm files for bankruptcy, 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.

The chief of the country's largest lender State Bank of India (SBI) said it is in the "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.

"If there is a negative impact on any enterprise, it impacts a larger ecosystem, whether it is banks, whether it is employees, whether they are vendors, consumers, so everybody gets impacted. So, that impact, when it comes, we will have to pay the price," Kumar said, when asked about the impact on banks if telcos move towards bankruptcy.

He was speaking to reporters on the sidelines of the unveiling of artworks namely 'Manasvi' and 'Tapasvi' at the Local Head Office (LHO) here. Around 400 computers, more than 2,000 microchips, over 400 keyboards and above 200 discarded credit cards were used to create the two artworks.

He added that the closure of any corporate impacts the country's economy and, therefore, the endeavour is to prevent the shutting down of any enterprise.

Asked if any telco account is currently classified as non-performing asset (NPA), he said there are two accounts, Aircel and RCom, that went into bankruptcy.

Besides, he said that SBI will not pass on the burden of the hike in premium of deposit insurance to its customers.

RBI Governor Shaktikanta Das on Saturday said the central bank will have internal discussions in case there are any issues arising out of the Supreme Court order regarding adjusted gross revenue (AGR) dues to be paid by telecom companies.

Meanwhile, debt-ridden telecom operator Vodafone Idea on Saturday said it is assessing the amount that can be paid towards AGR dues, even as it flagged concerns over the continuation of its business.

"The Company is currently assessing the amount that it will be able to pay to DoT towards the dues calculated based on AGR (Adjusted Gross Revenue), as interpreted by the Hon'ble Supreme Court in its order dated 24 October 2019. The Company proposes to pay the amount so assessed in the next few days," Vodafone Idea said in a BSE filing.

Vodafone Idea Limited (VIL), whose liability is estimated to be around Rs 53,038 crore, including Rs 24,729 crore of spectrum dues and Rs 28,309 crore in licence fee, has already warned of shutdown if no relief is given. With agency inputs