IDFC First, Yes Bank and IndusInd Bank will be Hit by Vodafone Idea Failure

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IDFC First, Yes Bank and IndusInd Bank will be Hit by Vodafone Idea Failure
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Vodafone Idea Ltd (NS: VODA ) share is on a tumble since this week. They have fallen over 27% since their closing price of Rs 8.25 on August 2 to Rs 6 today.

The prospect of a failure of the telecom company looks like a very distinct possibility. Kumar Mangalam Birla has stepped down from the position of a non-executive chairman of the company after the contents of his letter to the government came out in media reports.

Birla had written to the government saying that he was willing up give up promoter stake in exchange for a government entity stepping in to handle the beleaguered company. There was no response from the government. Vodafone (LON: VOD ) has also remained silent.

Vodafone Idea owes around Rs 28,700 crore to banks, both private and public. It owes State Bank Of India (NS: SBI ) Rs 11,000 crore, Yes Bank Ltd (NS: YESB ) at Rs 4,000 crore and IndusInd Bank Ltd. (NS: INBK ) at Rs 3,500 crore.

However, in terms of percentage, IDFC (NS: IDFC ) First Bank Ltd (NS: IDFB ) will take the biggest hit as Vodafone Idea debt consists of 2.9% of its loan book, followed by Yes Bank at 2.4% and IndusInd Bank at 1.65%.

Media reports say that IDFC First has already provisioned Vodafone Idea as stressed. IDFC First Bank shares closed down 4% at Rs 47.75, Yes Bank was down 1.58% at Rs 12.45 and IndusInd Bank closed down 2.33% at Rs 996.75. SBI closed down 3.28% at Rs 441.95.

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  • Vishnu Sharma @Vishnu Sharma
    This is big game by Jio very soon Jio will rule & buy both at throw away price and within a year this company will again fly.... Back door support to JioBest buy for long term investors within a year yours capital will grow 3 to 4 times.... Tax payers don't cry buy the shares and wait for a year....
    Like 9
  • Rakesh Prasad @Rakesh Prasad
    This is how to loot the taxpayers money.
    Like 2
  • Ankur Mahipal @Ankur Mahipal
    Govt. will not help vodafone to benefit Jio.
    Like 10
  • NIRAV JARIWALA @NIRAV JARIWALA
    public ka loan ke pase kha rahi hai Sarkar or company
    Like 8
  • NIRAV JARIWALA @NIRAV JARIWALA
    close the idea
    Like 0
  • MICHI TARA @MICHI TARA
    buy Vodafone and yes bank instead of buying other penny share it is better
    Like 6
  • Mihir Raj @Mihir Raj
    any assumptions for price in idfc first in coming weeks..
    Like 3
  • Mihir Raj @Mihir Raj
    any assumptions for price in idfc first in coming weeks ?
    Like 0
    • Doc Analyst @Doc Analyst
      42 or lower
      Like 0
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  • manish Kumar @manish Kumar
    nothing will be happening....govt will backed this company.
    Like 0
    • Mihir Raj @Mihir Raj
      Govt stepped back.
      Like 2
    • BS Yadav @BS Yadav
      best price to buy at this price target within 45-60 days 55 +IDFC First
      Like 0
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  • Milind Benke @Milind Benke
    sbi also hit
    Like 0

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