Banks want govt to boost telcos’ liquidity

Officials from SBI, PNB, Axis Bank and HDFC Bank recently called attention to financial difficulties being faced by the telecom industry.

Expressing concern over “stress” in the telecom sector, four leading banks have asked the government to hike liquidity in troubled telecom companies.

In a meeting with an inter-ministerial group (IMG), officials from State Bank of India, Punjab National Bank, Axis Bank and HDFC Bank called attention to financial difficulties being faced by the telecom industry.

They also cautioned that the financial stress could also lead to potential defaults. “Banks said there is stress and they are worried (about) defaults,” ET quoted an official familiar with discussions as saying. “There may be a second meeting with the same banks… they are supposed to work out solutions and come back.”

Officials also reportedly asked for a cut in spectrum usage charge (SUC) and Universal Services Obligation Fund (USOF).

Source: ET

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