The Mahangar Telephone Nigham Limited (MTNL) has defaulted on bank loans worth Rs 8585 crore. In an exchange filing, the public sector company said that it has defaulted on the principal amount and interest from seven public sector banks.
MTNL said that it has defaulted on the payment of capital borrowed from the State Bank of India, Punjab National Bank, Union Bank of India, UCO Bank, Bank of India, Punjab and Sindh Bank and India Overseas Bank.
MTNL default: Bank-breakup of amount
MTNL said that the largest capital borrowed by the company was from the Union Bank of India. The total principal amount from the Union Bank of India stands at Rs 3334.57 crore. Additionally, there is an overdue interest of Rs 398.65 crore on the principal amount.
MTNL’s borrowing from the India Overseas Bank stands at the second highest at Rs 2300 crore. Also, there was an additional interest of Rs 134.13 crore.
From the State Bank of India, the largest public sector of the country, MTNL’s principal amounts to Rs 313.90 crore. Additionally, the company also owes RS 49.53 crore in interest.
Furthermore, MTNL has defaulted on the Bank of India, Punjab National Bank, Uco Bank and Punjab and Sindh Bank for a principal amount of Rs 999.54 crore, Rs 432.16 crore, Rs 245.83 crore, and Rs 168.34 crore
MTNL said in the statement that the company’s total debt stands at 34,484 crore. Other than the banks’ debt of Rs 8585 crore, the company also owes Rs 24,071 crore in Sovereign Gold bonds and a Loan for DoT for paying SG Bond interest of Rs 1828 crore