IDFC open on telecom sector lending; hopeful on bond issue | india | Hindustan Times
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IDFC open on telecom sector lending; hopeful on bond issue

india Updated: Feb 07, 2012 22:49 IST
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At a time when banks are concerned about their lending to the telecom sector due to the recent cancellation of 122 licences of the telecom companies, Infrastructure Development Finance Company (IDFC) — the largest infrastructure lender is not apprehensive about its lending to the telecom sector.

“We are very comfortable with our exposure to the telecom sector,” said Vikram Limaye, executive director, IDFC. However, he did not reveal the exposure to the companies who were affected by the cancellation of licences.

The Supreme Court on Thursday ordered the cancellation of all the 122 licences for mobile networks issued in January 2008 that has created uncertainty for the banks and other financial institutions who had lend to the telecom companies.

IDFC increased its exposure to the telecom sector from 15.8% to 21.5% during the first half of current fiscal 2011-12. At the end of September, its exposure to telecom sector grew to R13,497 crore from R9,222 crore at the end of March 2011.

He said that the company has been selective in the past in lending and going forward the same approach in lending to telecom companies also.

The firm is expecting encouraging response to its tax saving infrastructure bonds, the second tranche of which is open for subscription and will close on February 25.

The lender had raised around R1,500 crore from 2.5 lakh investors through tax saving bonds in 2010-11.

IDFC is expecting a growth of 15-20% in the loan book in 2011-12.

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