MTNL Defaults on Bank Loan Payments Worth Rs 422.05 Crore

State-owned telecom company MTNL has defaulted on bank loan payments totaling Rs 422.05 crore. This includes Rs 328.75 crore in principal and Rs 93.3 crore in interest for June and July. The company owes Rs 7,873.52 crore to banks and financial institutions and seeks additional funds from the government.

State-owned telecom company MTNL has defaulted on bank loan payments amounting to Rs 422.05 crore, per a regulatory filing disclosed on Monday.

The total default comprises Rs 328.75 crore in principal and Rs 93.3 crore in interest due for June and July. MTNL owes 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.

Having previously raised Rs 5,573.52 crore from various banks, MTNL's overall debt stands at Rs 31,944.51 crore. The telecom firm has sought Rs 1,151.65 crore from the government for interest payments on sovereign guarantee bonds this fiscal year. The government has separately allocated Rs 3,668.97 crore for the principal amount of MTNL bonds in the Budget.

(With inputs from agencies.)