Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
As telecom operators bid aggressively to retain existing airwaves and total bids crossed Rs 1.03 lakh crore on Monday, leading domestic lenders are getting worried, expressing reservations about their ability to disburse loans to the sector.
“We will be extremely cautious about lending to the sector,” said Arundhati Bhattacharya, chairperson of State Bank of India.
“We’ll go on a case-by-case basis and will be very selective. We will closely watch the leverage position of all telcos.” SBI has lent more than Rs 40,000 crore to the sector. Telcos are bidding heavily to retain airwaves and protect revenue rather than adding to it, making the funding case weaker, said Rajiv Lall, chairman of Infrastructure Development Finance Corp (IDFC). Original post at ET Telecom