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Banks to bear the brunt

SBI is in ‘wait-and-watch mode’

By PTI in New Delhi
  • Published 16.02.20, 12:23 AM
  • Updated 16.02.20, 12:23 AM
  • a min read
SBI chairman Rajnish Kumar in Calcutta Telegraph picture

SBI chairman Rajnish Kumar on Saturday said banks will “have to pay the price” in case any telecom firm files for bankruptcy, a day after the Supreme Court made it clear that telecom companies will have to pay the Rs 1.47 lakh crore in past dues.

The SBI chief said it is in the “wait-and-watch mode” and the onus of ensuring telecom companies’ compliance with the Supreme Court order lies with the telecom department under the government.

“If there is a negative impact on any enterprise, it impacts a larger ecosystem, whether it is banks, whether it is employees, whether they are vendors, consumers, so everybody gets impacted. So, that impact, when it comes, we will have to pay the price,” Kumar said when asked about the impact on banks if telcos move towards bankruptcy.

Meanwhile, RBI governor Shaktikanta Das on Saturday said the central bank will have internal discussions in case there are any issues arising out of the Supreme Court order regarding AGR dues to be paid by telecom companies.

When asked about the order, Das said it would be internally deliberated upon, if at all there are issues arising out of it.