Provisions plan: Banks stay cautious on Vodafone exposures

More than a month since the department of telecommunications unveiled a relief package for the sector, including a moratorium on unpaid dues by telcos, banks remain cautious with regard to their exposures to Vodafone Idea. Most lenders have chosen to make provisions proactively for the account even as it remains a standard exposure.

In their Q2FY22 investor presentations some banks have stated their provision coverage on the Vodafone account, without naming the company. IDFC First Bank, which has a Rs 3,244-crore exposure to the company, has set aside Rs 487 crore, or 15% of its total fund-based and non fund-based exposure, as provisions.