Banks Seek Promoter Guarantees, Viability Report Before Fresh Funding to Vi: Report

Banks have asked for guarantees from promoter group companies and a fresh Techno-Economic Viability (TEV) report outlining Vodafone Idea Ltd’s repayment strategy and earnings potential before considering new lending to the debt-laden telecom operator, according to a Moneycontrol report by Hamsini Karthik and Danish Khan dated May 12, 2026, citing sources.

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Vi in Talks with Banks

Vodafone Idea Ltd has been in talks with a consortium led by State Bank of India (SBI) to raise around Rs 25,000 crore in debt, along with Rs 10,000 crore in letter of credit (LC) facilities for procurement of 4G and 5G equipment. The discussions gathered pace after the Department of Telecommunications (DoT) provided relief on the company’s adjusted gross revenue (AGR) dues.

SBI Doesn’t Want Largest Lender Role

However, during negotiations, SBI conveyed that it does not wish to remain the largest lender in the consortium and has reached out to smaller public sector and private banks to participate in the funding, sources said, according to the report. Smaller lenders, however, are reportedly hesitant to extend loans on the same terms as SBI, particularly on interest rates, as they believe fresh lending may not be viable from an earnings perspective.

Banks Demand Promoter Guarantees

“Banks have told Vodafone Idea that they will not provide fresh loans, unless there is guarantee from group companies. There is no communication from VIL on this regard to banks yet,” a banking source was quoted as saying. The source added that lenders are seeking guarantees from group entities or explicit commitments on additional capital infusion from promoters.

Another person familiar with the matter reportedly said discussions are ongoing and no final decision has been made on extending additional credit to the telecom operator.

AGR Relief Boosts Talks

The renewed lender engagement follows the DoT’s revision of Vodafone Idea’s AGR dues to Rs 64,046 crore, down from Rs 87,695 crore earlier, and the deferment of a large portion of payments to FY36–41. The relief package announced on April 30 marked the second major regulatory support measure after an earlier intervention in December.