SBI has approved Rs 35,000 crore Consortium Loan to Vodafone Idea

SBI has approved Rs 35,000 crore Consortium Loan to Vodafone Idea. SBI has approved the proposal and circulated its appraisal to other consortium participants.

Vodafone Idea proposes to raise around Rs 35,000 crore from consortium of Banks.

PNB, Union Bank of India will participate in the consortium, with their individual exposure yet to be finalised. NaBFID is expected to approve Rs 4,000 crore.

Other public sector banks are now working towards finalising their individual exposures. Punjab National Bank (PNB) will participate in the consortium and is expected to decide the quantum of its exposure within the next 10 days, while Union Bank of India is likely to take a call by the end of November, according to media reports.

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Meanwhile, the National Bank for Financing Infrastructure and Development (NaBFID) which wasn’t a part of the old consortium is expected to approve a Rs 4,000 crore exposure shortly.

As per ET report, PNB would participate in the proposed lending arrangement, although the amount it would commit has not yet been finalised. The bank is awaiting the appraisal details from SBI to take the matter through its internal approval process.

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Key Details of the Loan Package

Total Value: ~₹35,000 crore ($3.5 billion), split into roughly ₹25,000 crore in funded facilities and ₹10,000 crore in non-funded facilities.

Lead Lender: State Bank of India (SBI) has approved its proposal—taking an estimated 20% exposure of around ₹7,000 crore—and circulated its appraisal to other participating banks.

Consortium Lenders: Includes public sector banks like Punjab National Bank (PNB) and Union Bank of India, alongside the National Bank for Financing Infrastructure and Development (NaBFID), which is expected to approve ₹4,000 crore. Private Indian banks and foreign lenders via external commercial borrowings (ECBs) are also part of the broader framework.

Tenure: Approximately 10 years.

Use of Funds: To support Vodafone Idea’s ₹45,000 crore capital expenditure program over three years, expand 4G coverage, accelerate 5G rollout, and rebuild its market competitiveness against Jio and Airtel.

Key Conditions: Billionaire Kumar Mangalam Birla is required to remain chairman of Vodafone Idea throughout the loan tenure, and repayment guarantees are tied to default terms.

Private and Foreign Lenders: The framework is structured to require a minimum exposure of ₹1,500 crore per creditor. Major institutions like HDFC, ICICI, and foreign commercial banks (via external commercial borrowings) are reviewing participation.