New Delhi: State Bank of India President Rajnish Kumar said on Saturday that banks will have to ‘pay the price’ if a telecom company goes bankrupt. Earlier on Friday, the Supreme Court had made it clear that telecom companies would have to pay statutory dues of Rs 1.47 lakh crore.
Mr. Rajnish Kumar said that the bank is monitoring the developments ahead. When Kumar was asked what effect it would have on banks if a telecom company headed towards bankruptcy, he said, “If there is a negative impact on any enterprise, then it will have an impact on a broader system.” Whether they are banks, whether they are employees, whether they are vendors or customers, everyone will be affected.
In response to a question, he said that the accounts of Aircel and RCom are currently classified as non-performing assets (NPAs). Both companies have applied to be declared bankrupt. In response to another question, he said that due to increase in the amount of bank deposits, the premium will not be passed on to the customers.
