State-owned telecom company MTNL has defaulted on bank loan payments amounting to Rs 422.05 crore, according to a regulatory filing released on Monday. This total includes a Rs 328.75 crore default on the principal instalment and Rs 93.3 crore in interest for June and July.
MTNL's detailed report indicates specific defaults: Rs 155.76 crore to Union Bank of India, Rs 140.37 crore to State Bank of India, Rs 40.33 crore to Bank of India, Rs 40.01 crore to Punjab & Sind Bank, Rs 41.54 crore to Punjab National Bank, and Rs 4.04 crore to UCO Bank.
Previously, MTNL had raised Rs 5,573.52 crore in debt from these banks. The struggling telecom company now holds total borrowings of Rs 7,873.52 crore from banks and financial institutions, contributing to a total company debt of Rs 31,944.51 crore.
MTNL has requested Rs 1,151.65 crore from the government to cover the interest payments on sovereign guarantee bonds for the current fiscal year. Additionally, the government has proposed allocating Rs 3,668.97 crore in the Budget to cover the principal repayment of MTNL bonds.
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