Banks are unwilling to extend fresh credit to Vodafone Idea (Vi) following the Supreme Court’s recent dismissal of a plea by telecom operators seeking relief on pending adjusted gross revenue (AGR) dues, according to multiple media reports. These reports separately outlined the stances of private and public sector banks.
Also Read: Vodafone Idea Says It Can’t Operate Beyond FY 2025–26 as Banks Refuse Loans
PSU Banks Deny Fresh Loans to Vi
Public sector lenders are unwilling to provide fresh loans to Vodafone Idea after the Supreme Court (SC) dismissed, last month, a plea by telecom companies seeking a waiver of pending AGR dues, according to three senior bank executives cited in a Business Standard report dated June 4, 2025, at 11:56 PM.
“We have not engaged with the government on this matter and currently have no plans to do so. There are no intentions at this time to give any relaxations on the pending dues of Vi or provide any fresh loans to the company,” the report quoted a senior bank executive as saying.
Private Lenders Declined to Participate
According to a separate NDTV Profit report, published earlier on the same day at 11:41 AM, private lenders have declined to participate in any loan proposal for the time being. A banker with direct knowledge of the matter was quoted as saying so.
However, loan proposals from Vodafone Idea may be considered by major public sector lenders if the government agrees to waive a portion of the AGR dues, the report said, citing people familiar with the matter.
Also Read: Vodafone Idea Resumes Debt Talks with Banks After AGR Clarity from Supreme Court
PSUs May Consider After AGR Clarity
Large public sector lenders have reportedly informed the company that a proposal may be considered only after due clarity comes, the people said. Vodafone Idea owes more than Rs 83,000 crore in AGR dues to the government at present — of which — the company has sought a waiver of Rs 45,000 crore.
If the government gives such a waiver or at least more time to repay such dues, major lenders are willing to lend to the company, the sources quoted above said, as mentioned in the report.
The government is also keen to find a solution for the Vodafone Idea problem because it is now a 49 percent shareholder in the company. Allowing the company to fail might not be looked at favourably, the banker quoted above said, according to the report.
Also Read: Banks Wary of Lending to Vodafone Idea Despite Government’s Equity Boost
Change in Stance from PSUs
However, the two reports—while citing sources—reflect differing viewpoints. While the later report indicates that public sector lenders are unwilling to extend fresh loans to Vi, it also suggests there may have been a shift in stance over the course of the day. Meanwhile, private sector lenders appear to have maintained a consistent position of non-participation.
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