The State Bank of India (SBI) has declared the loan accounts of Mahanagar Telephone Nigam Limited (MTNL) as sub-standard non-performing assets with effect from September 28, 2024 due to non-payment of instalments and interest since June 30, 2024.
According to a letter (dated October 1st) by SBI, the total outstanding on the MTNL loan account was Rs 3.25 billion as of September 30, 2024.
SBI also stated that MTNL has an overdue payment of Rs 2.81 billion which needs immediate payment to regularise the account. It has also sought details of various monetisation projects on which MTNL is working, including its agreement with NBCC to develop 13.88 acres of land here into a residential and commercial space. The bank said that it would be forced to take legal actions if the company fails to do so. In addition, SBI has sought status of the government assurance to clear MTNL dues.
Furthermore, several banks have taken actions against MTNL for non-payment of dues, including Punjab National Bank and Union Bank. Union Bank of India has frozen all accounts of MTNL for non-payment of dues.
