Search
Telecom Companies May Default Due to Financial Strain: Banks Say
June 19, 2017
India’s top four lenders including HDFC Bank and SBI expressed their concerns over the increased financial stress in the telecom industry and pointed out that the companies coming under it may default. This revelation was made during a recent meeting with the banks and the ministry when they were asked to provide information on telecom sector’s exposure and their extent of stress.
Telecom companies say they are struggling with profitability mainly because of the increased competition by Reliance Jio that took extreme measures to gain a large market share. In fact, last month Idea Cellular reported a net loss of Rs. 325 crore for the March quarter.
