According to a regulatory filing, the Mahanagar Telephone Nigam Limited (MTNL) has defaulted on an interest payment of Rs 351.5 million to Union Bank of India. The aforesaid interest amount was due to be paid in July 2022.
Meanwhile, the company burdened with a total debt of Rs 273.30 billion. The operator has a total outstanding loan of 58.49 billion to be paid to Union Bank of India. It had raised loan from Union Bank of India, Andhra Bank and Corporation Bank. However, the Andhra Bank and Corporation Bank have now merged into the Union Bank of India.
In addition, MTNL owes a total of Rs 169.30 billion to other banks and financial institutions. MTNL reported a narrowing of consolidated loss to Rs 6.53 billion for the quarter ended (QE) June 2022. Besides, the auditors of MTNL has already informed that the company’s net worth has been fully eroded. Of late, in July 2022, the Union Cabinet approved the raising of sovereign guarantee bonds for MTNL for an amount of Rs 175.71 billion for the next two financial years.
