AGR dues relief unlikely to boost bank confidence in Vodafone Idea, say experts

Our Founder & Managing Director, Mr. Shriram Subramanian, shared his insights in BusinessLine on why the Central government’s AGR dues moratorium is unlikely to significantly improve bank confidence in Vodafone Idea. While the move ensures zero interest and extends repayment timelines, lenders remain wary as the relief does not address the company’s underlying financial stress. As a result, the telecom operator’s long-term credit profile continues to face scrutiny.

He highlighted that government deferments, while supportive, do not materially alter the underlying risk profile for banks. He explained that the moratorium largely defers obligations, leaving significant liabilities on the balance sheet. In this context, lenders may consider options such as voluntary restructuring or, where challenges persist, other resolution mechanisms for borrowers with sizeable unresolved dues.

Read the full article: https://www.thehindubusinessline.com/info-tech/agr-dues-relief-unlikely-to-boost-bank-confidence-in-vodafone-idea-say-experts/article70464590.ece