MTNL Faces Fresh Financial Trouble with Rs 8,585 Crore Default
State-run telecom firm Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on loans. The amount of interest payments is nearly Rs 8,585 crore owed to seven public sector banks. The default includes Rs 7,794.34 crore in principal amount and Rs 790.59 crore in pending interest.
Banks Affected by Default
- Union Bank of India: Rs 3,733.22 crore outstanding
- Indian Overseas Bank: Rs 2,434.13 crore outstanding
- Bank of India: Rs 1,121.09 crore outstanding
- Punjab National Bank: Rs 474.66 crore outstanding
- State Bank of India: Rs 363.43 crore outstanding
- UCO Bank: Rs 273.58 crore outstanding
- Punjab & Sind Bank: Rs 184.82 crore outstanding
Impact on MTNL
MTNL’s shares dropped sharply by 4.80% to close at Rs 49.59 after the news. The company’s total debt now stands at around Rs 34,484 crore. This includes sovereign-guaranteed bonds worth Rs 24,071 crore. Additionally, Rs 1,828 crore was borrowed from the Department of Telecommunications.
Challenges Ahead
The latest default adds to MTNL’s struggles with huge debt and rising competition. Despite government support, the company’s road to recovery remains tough due to its increasing debt burden
