MTNL (Mahanagar Telephone Nigam Limited) has outstanding loan payments from different banks. The company has a total of Rs. 422 crores pending for the payment. Thus, it is divided into two parts, the principal amount of Rs. 328.75 Crores on default and interest on debt of Rs. 93.3 Crores. The company also shared the details about different banks that gave the loan. MTNL is a subsidiary of Bharat Sanchar Nigam Limited (BSNL). It is a government company that is now getting preference from the customers due to increased pricing of other telecom companies.
MTNL Under The Default Of ₹422 Crores
MTNL is currently under the default payment of Rs. 422 Crores. The company took the loan from different sources. The lenders of the loan to MTNL include Union Bank of India with default on payment of Rs. 155.76 Crores, Rs. 140.37 crores from State Bank of India, Rs. 40.33 crores from Bank of India, Rs. 40.01 Crores from Punjab & Sind Bank, Rs. 41.54 Crores from Punjab National Bank, and Rs. 4.04 crores from UCO Bank. Thus, it has a total default on payments of Rs. 328.75 Crores on installment of the principal amount. Apart from that, it has a default of Rs. 93.3 Crores on interest on debt.
MTNL’s operations are held by BSNL. The consumers in the telecom industry gave high preference to the private sector because of their faster network. However, the trend is now moving towards BSNL because the company is providing a good network at a cheaper price. MTNL is currently loss-making. However, it is working to handle the debts. The company has previously taken a debt from these banks worth Rs. 5,573.52 Crores.
Apart from that, its total debt is Rs. 31,944.51 Crores. The company also took Rs 1,151.65 Crores from the government for the payment of the interest on the sovereign guarantee bonds. The government is also willing to allocate an amount of Rs. 3,668.97 Crores for the payment of the principal amount of the MTNL bonds. The company is under a huge debt. It is trying to make efforts to reduce the loan default amount. However, there is no clarity yet about the whole amount of payment.
MTNL needs the government’s support to recover the debt. The allocation of the funds will help the company to recover from the debt a lot. MTNL has not said much about the default amount yet. We hope you get enough details about Telecom company MTNL’s loan payment. Stay tuned for more information on our website.