Major banks like State Bank of India, Punjab National Bank , Bank of India and Union Bank of India are all set to release funds to the telecom players for the payment of the just-concluded 3G spectrum auction.
A senior SBI official told FE on condition of anonymity that his bank has sanctioned loans worth Rs 15,000-16,000 crore to three to four major telecom players for 3G payment .
?The rate of interest will be around SBAR, which was hovering at 11.5% currently. Still, it will vary keeping in view the market conditions. Suppose there was a huge competition, then we may think of reducing our rates too,? added the official.
A senior official of the state-owned lender, Punjab National Bank(PNB), told FE that his bank has got an exposure of Rs 600 crore, involving three customers who have already approached the bank in this connection.
The official added that normally the bank asks for 2:1 debt equity ratio from its customers while giving such loans.
An official of Union Bank of India said that save for one or two, almost all the telecom players participating in the bidding, have approached the bank for loans. The bank had asked for the debt equity ratio of 3:1 while finalising such loans. However, the official didn?t disclose the amount that has been sanctioned by his bank.
A senior official of Bank of India said the bank has sanctioned loan to four to five telecom players for 3G auction to the tune of Rs 1,500 crore, out of the total exposure of Rs 4,000-5,000 crore in the telecom sector.
As the telecom players? revenue streams are under pressure due to ongoing tariff war, their profit margins are likely to come under pressure, he said.
An analysts from Crisil said the the winning bidders are accessing finance from various sources like banks, short term commercial papers and overseas borrowing.
