Mumbai: Reliance Group chairman Anil Ambani on Tuesday said banks not giving any more loans to telecom companies on account of the sector which is ailing with around Rs 6 lakh crore bad loans.
A report on IANS quoted Ambani as saying that telecom sector is under stress and banks are not extending credit to telecom companies. As per a rough estimate, telecom sector is reeling under the burden of Rs 6 lakh crore loans.
The Reserve Bank of India had earlier instructed all banks to be cautious in lending money to telecom companies, the report added. Besides, banks also have huge burden of debt in the range of Rs 8-11 lakh crore.
"The Reserve Bank of India in April asked all banks to be cautious on telecom. Banks are now not extending any credit," Ambani told the Reliance Communications (RCOM) annual general meeting.