State Bank of India Approves Loan for Vodafone Idea

State Bank of India agreed to sanction its portion of a proposed 35,000 crore loan package for Vodafone Idea to support a 45,000 crore capital expenditure plan over the next three years. The funding aims to expand the operator's 4G footprint and roll out 5G services across 17 priority circles to increase competitiveness against Reliance Jio and Bharti Airtel.

The total funding request consists of 25,000 crore in funded bank facilities and 10,000 crore in non-funded facilities. While the bank's approval removes a significant roadblock, it will not release the funds until other lenders commit their respective shares. Vodafone Idea has already secured 6,400 crore in long-term facilities and placed equipment orders totaling 9,000 crore.

Private-sector banks remain cautious and continue to demand stronger guarantees from the promoter group due to the company's financial stress. The loan agreement follows a commitment from Vodafone Idea to provide guarantees through smaller promoter entities. The Government of India remains a major shareholder with nearly 49% ownership and has previously provided relief regarding adjusted gross revenue obligations.