MTNL Defaults on Rs 422 Crore Bank Loan: Telecom Firm Faces Financial Crisis

New Delhi, Aug 5 (PTI) State-owned telecom company MTNL has defaulted on bank loan payments worth Rs 422.05 crore, a regulatory filing said on Monday.

The total default amount comprises Rs 328.75 crore default on instalment of principal and Rs 93.3 crore towards interest on debt for June and July.

According to the details shared by MTNL, 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.

The telecom firm earlier raised Rs 5,573.52 crore in debt from these banks.

The loss-making telecom firm has total borrowings of Rs 7,873.52 crore from banks and financial institutions, and the total debt of the company stands at Rs 31,944.51 crore.

MTNL has sought Rs 1,151.65 crore from the government for payment of interest arising out of sovereign guarantee bonds in the current fiscal.

Separately, the government, in the Budget, has proposed to allocate Rs 3,668.97 crore for the payment of the principal amount of MTNL bonds.