Frozen MTNL Accounts: Union Bank of India has frozen all accounts of state-owned telecom company MTNL for non-payment of dues, a regulatory filing said on Wednesday.
The company was informed by Union Bank of India on August 21 that all its accounts had been frozen for non-payment of loans, debt-ridden MTNL said.
“This is to inform you that Union Bank of India through its letter… dated 21st August, 2024 has informed MTNL that its account has been converted to NPA with effect from 12th August, 2024, due to which all accounts of MTNL with Union Bank of India have been automatically frozen,” MTNL said.
Earlier this month, MTNL informed the stock exchanges that it had defaulted on bank loans worth Rs 422.05 crore.
According to details shared by MTNL, it has defaulted on Rs 155.76 crore of debt owed 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.
The telecom firm had earlier raised a debt of Rs 5,573.52 crore from these banks.
The loss-making telecom firm has total borrowings of Rs 7,873.52 crore from banks and financial institutions, and the company’s total debt stands at Rs 31,944.51 crore.
MTNL has sought Rs 1,151.65 crore from the government towards interest payments on sovereign guaranteed bonds in the current fiscal year.
On the other hand, the government, in Budgetallocated Rs 3,668.97 crore for payment of principal amount of MTNL bonds.
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