MTNL Defaults on Rs 422 Crore Loan Towards Banks

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mtnl defaults on rs 422 crore loan

Mahanagar Telephone Nigam Limited (MTNL), a state-run telecom company, has defaulted on the payment of a Rs 422 crore loan towards several banks. The company announced this in a regulatory filing on Monday. The Rs 422 crore contains Rs 328.75 crore as instalment on a principal amount and the remaining Rs 93.3 crore is towards interest on debt for June and July 2024.

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MTNL has also shared the amount that it had to pay to banks individually. As per the details shared by the company, it has defaulted on the payment of Rs 155.76 crore on debt raised from Union Bank of India, Rs 140.37 crore from State Bank of India, Rs 40.33 crore from Bank of India, Rs 40.01 crore from Punjab & Sind Bank, Rs 41.54 crore from Punjab National Bank and Rs 4.04 crore from UCO Bank.

MTNL had raised Rs 5,573.52 crore in debt from these banks. The state-run telecom company has total borrowings of Rs 7,873.52 crore from the lenders, and its total debt stands at Rs 31,944.51 crore.

The company has sought government’s help for paying Rs 1,151.65 crore interest on the sovereign guarantee bonds in the current fiscal. The central government has already proposed to allocate Rs 3,668.97 crore for the payment of the principal amount of MTNL bonds.