Banks Hesitant to Extend Fresh Loans to Vodafone Idea After AGR Verdict: Report

Banks are unwilling to extend fresh credit to Vodafone Idea (Vi) following the Supreme Court’s recent dismissal of a plea by telecom operators seeking relief on pending adjusted gross revenue (AGR) dues, according to multiple media reports. These reports separately outlined the stances of private and public sector banks.

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Also Read: Vodafone Idea Says It Can’t Operate Beyond FY 2025–26 as Banks Refuse Loans

PSU Banks Deny Fresh Loans to Vi

Public sector lenders are unwilling to provide fresh loans to Vodafone Idea after the Supreme Court (SC) dismissed, last month, a plea by telecom companies seeking a waiver of pending AGR dues, according to three senior bank executives cited in a Business Standard report dated June 4, 2025, at 11:56 PM.

“We have not engaged with the government on this matter and currently have no plans to do so. There are no intentions at this time to give any relaxations on the pending dues of Vi or provide any fresh loans to the company,” the report quoted a senior bank executive as saying.

Private Lenders Declined to Participate

According to a separate NDTV Profit report, published earlier on the same day at 11:41 AM, private lenders have declined to participate in any loan proposal for the time being. A banker with direct knowledge of the matter was quoted as saying so.

However, loan proposals from Vodafone Idea may be considered by major public sector lenders if the government agrees to waive a portion of the AGR dues, the report said, citing people familiar with the matter.