MTNL defaults on Rs 5,726 crore loans; total debt at Rs 32,097 crore

The company shared that its total financial debt now stands at Rs 32,097.28 crore -- 40 times more than its consolidated annual income of Rs 798 crore

Loss-making state-owned telecom firm MTNL has defaulted on a total payment of Rs 5,726.29 crore, comprising a principal amount of Rs 5,492 crore raised from various banks and an interest of Rs 234.28 crore, the company said in a regulatory filing.

The company shared that its total financial debt now stands at Rs 32,097.28 crore — 40 times more than its consolidated annual income of Rs 798 crore.Union Telecom Minister Jyotiraditya Scindia on Tuesday told reporters that there is no insecurity about the debt raised by MTNL as it is backed by a sovereign guarantee and the company’s business will be transferred to BSNL.

Union Bank of India has the biggest exposure to MTNL.According to the data shared by MTNL, the company has defaulted on payment of Rs 3,480.85 crore, due to be paid to Union Bank of India.Bank of India has total exposure of Rs 1,039.77 crore comprising Rs principal outstanding of Rs 999.54 crore, Punjab National Bank Rs 447.65 crore with principal of Rs 432.16 crore, State Bank of India Rs 329.47 crore with Rs 313.9 crore principal outstanding, UCO Bank Rs 255.42 crore with Rs 245.24 crore principal outstanding.MTNL has defaulted on payment of Rs 173.13 crore due to paid to Punjab and Sind Bank, comprising the principal amount of Rs 166.57 crore.