Punjab National Bank (PNB) has reportedly declined Vodafone Idea's (Vi) request for fresh lending, said the bank's Managing Director and Chief Executive Officer, Atul Kumar Goel, according to a Business Standard report, adding that the possibility will only arise if the company gets AAA rating.
Also Read: Banks Hesitant to Lend to Vodafone Idea Following Supreme Court Ruling: Report
PNB Denies Fresh Lending to Vodafone Idea
"We received a written request from Vi, which we have denied. However, if any telecommunications company achieves a AAA rating, we may consider lending to them," Goel said, according to media report.
Power Finance Corp and REC Also Reject Loan Proposal
Recently, Power Finance Corp (PFC) and its subsidiary, Rural Electrification Corp (REC), also reportedly rejected Vodafone Idea's long-term loan proposal, citing mismatches with internal underwriting guidelines and concerns about the collateral offered.
"We evaluated the proposal thoroughly and found that it did not meet our internal assessment, criteria and policies, and so we have conveyed to them a few weeks ago that we will not be able to consider this loan," REC's chairman reportedly said, according to an earlier report.
Also Read: Vodafone Idea Faces Setback as PFC and REC Decline Loan Request: Report
Despite recent deals with vendors for 4G and 5G equipment, the lack of funding could hinder Vi's competitive edge against operators like Reliance Jio and Airtel.
