Bankers to Vodafone Idea are bracing for higher provisions on their loans to the beleaguered telecom firm as the Department of Telecom examines options which include the encashment of bank guarantees. Any move to encash guarantees to recover dues from Vodafone Idea could lead to possible default and bankruptcy, experts warned. “The fear now is that this problem which is restricted to the telecom sector will become bigger and engulf the banking sector. It is not going to ease the burden or make life easy for Vodafone Idea but will surely dent banks due to higher provisions. The government will get its money but at the risk of hurting the banking sector,” said a senior executive from a private sector bank with exposure to the company.