Banks will have to pay if telecom companies go bankrupt: SBI Chairman

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New Delhi, 15 February 2020 Saturday

State Bank of India (SBI) chairman Rajneesh Kumar on Saturday said that if a telecom company goes bankrupt, banks will have to 'pay it'. Earlier on Friday, the Supreme Court had made it clear that telecom companies have to pay a total of Rs 1.47 lakh crore.

The president of SBI, the country's largest lawn lender, said that the bank is sitting on the forefront of events. When Kumar was asked what would happen to banks if a telecom company moves to insolvency, he said, “If any venture is negatively impacted, it will actually have a wider system. Whether it is a bank, an employee, a vendor or a customer, all will be impressed. '

Aircel and Rcom were placed in the NPA category

Responding to a question, he said that at present Aircel and Rcom are classified as non-performing assets (NPA). Both companies have filed for bankruptcy. In response to another question, he said that the burden of premium should not be imposed on the consumers due to the increase in the bank's insurance amount.

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