Tata Tele-Bharti Airtel deal will help stress resolution, say lenders

The transfer of Tata group’s consumer mobile business to Bharti Airtel is expected to lessen the debt burden on lenders and pave the way for further consolidation in the troubled sector. 

Though many cases, including Reliance Communication, await resolution, senior bank executives said Thursday’s deal would bring relief to lenders as the telecom assets would move to an operationally-strong entity. According to senior PSU bank executives, the Tata group has conveyed it would stand by it loan clearing commitments. The executives said they expected the group to haggle for concessions (on payment terms), but hoped there wouldn’t be a big impact.