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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
The troubled telco in India – Vodafone Idea is in talks with the State Bank of India seeking fresh loans. It intends to strike a deal that could pave the way for other banks to boost the cash-strapped wireless operator’s survival chances by offering credit. Vodafone Idea was requested by the State Bank of India to outline a turnaround strategy. This development comes as there seems to be no respite to the joint venture between Vodafone and the conglomerate from Kumar Mangalam Birla.
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The government lender has asked Vodafone Idea to give a detailed plan regarding its financial viability such as equity infusion from major shareholders, tariff outlook, cash conservation plans, and a roadmap to go to profitability.
Vodafone Idea Seeks Fresh Funds
The telecom operator is prepping these details for the lender and discussions are underway. As of now, there is no assurance that the telco will receive the funds. For now, the State Bank of India did not comment anything on this, said the Bloomberg report. Also, Vodafone Idea, which reported its quarterly earnings today did not comment on the matter.
If it materialises, the bank loan will be a lifeline for the merged company. Notably, it did not report any annual profit since the advent of Reliance Jio’s services in 2016 and started losing subscribers to its rivals. Banks are now more amenable towards the wireless operator that has failed to show a profit after the government announced the telecom relief package in September, which helped the company avert an insolvency threat.
