Banks not keen to fund Vodafone Idea before capital hike: Report

MUMBAI: Loss-making Indian telecom operator Vodafone Idea has sought at least Rs 7,000 crore ($846 million) in emergency funds from local banks, which are however reluctant to extend fresh loans, four sources familiar with the matter said.

The company needs the funds to remain in business. But the lenders will wait for either a capital increase by its main shareholders – UK-based Vodafone Group and local investor Aditya Birla Group – or a debt-to-equity conversion by the government before granting the debt-laden operator more funding, the sources told Reuters.

“Without that (capital injection) it looks difficult for the company to …survive,” said one top official at a state-owned bank.