MTNL's Financial Troubles Deepen as PNB Downgrades Loan Account

Mahanagar Telephone Nigam Ltd (MTNL) faces new financial challenges as Punjab National Bank (PNB) downgrades its loan account to a Non-Performing Asset (NPA). The downgrade follows MTNL's failure to pay interest and installments, with outstanding dues reaching approximately Rs 441 crore and overdue amounting to over Rs 46 crore.

Mahanagar Telephone Nigam Ltd (MTNL) is in fresh financial trouble as Punjab National Bank (PNB) has downgraded its loan account to a Non-Performing Asset (NPA) this month. The downgrade comes following MTNL's failure to pay interest and installments.

According to a filing by MTNL to stock exchanges, the communication from PNB dated September 13, 2024, reveals that across multiple accounts, the outstanding amount totals about Rs 441 crore while the overdue amount is over Rs 46 crore.

In its communication, PNB has requested MTNL to immediately repay the mentioned amount and to arrange a valid letter of comfort from a competent authority.

(With inputs from agencies.)