Lenders, government working on MTNL account resolution plan; to complete to by December

.

The lenders and the government is working on the resolution of Mahanagar Telephone Nigam Ltd (MTNL) account and expected to be completed by December, 2025, said Bank of India's managing director and chief executive officer, Rajneesh Karnatak.

"Bank of India, CoC, DFS and government is working on resolution of MTNL account by December," Karnatak told Moneycontrol on sidelines of post earnings press conference.

Bank of India have exposure of Rs 1,121.09 crore as on June 25.

On July 15, MTNL informed exchanges that it has defaulted on a shade under Rs 8,585 crore in principal and interest payments to seven state-owned banks as on June 25.

The lenders are Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.

According to the filing, the default amounts of principal and interest due to Union Bank of India was Rs 3,733.22 crore, Punjab National Bank Rs 474.66 crore and State Bank of India Rs 363.43 crore.

MTNL also defaulted on Rs 273.58 crore of dues to UCO Bank, Rs 184.82 crore of Punjab and Sind Bank and Rs 2,434.13 crore of Indian Overseas Bank, the filing said on July 15.

The overdue principal on all the seven banks totalled Rs 1,868.61 crore.