MTNL defaults on repayment of Rs 326cr, SBI declares it NPA

New Delhi, Oct 6, 2024

State Bank of India has declared loan accounts of debt-ridden state-owned MTNL as sub-standard non-performing assets due to non-payment of instalments and interest since June 30, the telecom firm said in a filing.

The total outstanding on the MTNL loan account was Rs 326 crore as of Sept 30, according to the SBI letter dated Oct 1 shared by the company with the stock exchanges.

Banks classify those accounts as NPA - sub standard category accounts whose default period is less than 12 months and have the potential to clear dues.

SBI, in the letter, said that Rs 282 crore is overdue, which needs to be paid immediately to regularise the account. It has sought the status of govt assurance to clear MTNL dues.

SBI has sought details of the monetisation projects MTNL is working on, including its agreement with NBCC to develop 13.88 acres of land in Delhi into a residential and commercial space. SBI said it will be forced to take legal action against the state-owned telecom firm if it fails to make payment.

[The Times of India]