Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on loan repayments worth ₹8,659 crore ($990.48 million) to a group of seven public sector banks, the state-run telecom company said on Monday, reported Reuters.
In July, MTNL had disclosed defaults of ₹8,585 crore to the same lenders.
The default includes ₹7,794 crore in principal and ₹865 crore in overdue interest to lenders, including Union Bank of India, Bank of India, Punjab National Bank, and State Bank of India.
The debt-laden operator, which has long struggled with falling subscriber numbers, mounting losses, and shrinking relevance in India’s highly competitive telecom market, has been surviving largely on government support and debt roll-overs.
MTNL’s total loan has risen to ₹34,577 crore ($3.96 billion) as of July 31, from ₹34,484 crore in June-end, which also includes sovereign-guaranteed bonds and loans from the Department of Telecommunications.
Debt resolution
In another news, it was reported early this month that MTNL’s debt resolution is likely to take place in the next three to four months.
While there is no specific update at the moment, several discussions are underway regarding the resolution of the company’s loan account, and it will take some time for all stakeholders to “crystallize the entire issue”, Ashok Chandra, managing director and chief executive officer, Punjab National Bank, said in an interview to Livemint.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit score. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
About the Author
