MTNL defaults Rs 5,726 crore loans, total debt stood at Rs 32,097 crore

State-owned telecom company MTNL has defaulted on a total payment of Rs 5,726.29 crore. This amount includes a principal of Rs 5,492 crore borrowed from various banks, along with interest amounting to Rs 234.28 crore, as reported in a regulatory filing by the company. MTNL's total financial debt now stands at Rs 32,097.28 crore, which is 40 times its consolidated annual income of Rs 798 crore. 

Union Telecom Minister Jyotiraditya Scindia stated on Tuesday that there is no concern regarding MTNL's debt, as it is backed by a sovereign guarantee. He also mentioned that the company's business will be transferred to BSNL.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : Defense Stock, BEML surges over by 4.2%, here is price target for PSU stock

Union Bank of India has the biggest exposure to MTNL. According to the data shared by MTNL, the company has defaulted on payment of Rs 3,480.85 crore, due to be paid to Union Bank of India.

Bank of India has total exposure of Rs 1,039.77 crore comprising Rs principal outstanding of Rs 999.54 crore, Punjab National Bank Rs 447.65 crore with principal of Rs 432.16 crore, State Bank of India Rs 329.47 crore with Rs 313.9 crore principal outstanding, UCO Bank Rs 255.42 crore with Rs 245.24 crore principal outstanding. MTNL has defaulted on payment of Rs 173.13 crore due to paid to Punjab and Sind Bank, comprising the principal amount of Rs 166.57 crore.
 

Read Also : Indian Overseas Bank to receive Rs 1,359-crore income tax refund