MTNL Faces Financial Crunch: SBI Declares Loans as NPAs

State Bank of India has classified MTNL's loan accounts as sub-standard non-performing assets due to outstanding payments. With Rs 325.52 crore owed, SBI demands immediate repayment. The situation threatens legal action against MTNL, which seeks government support to settle debts.

The State Bank of India has given a debt-ridden warning to the state-owned telecom firm MTNL, classifying its loan accounts as non-performing assets after missed instalments since June 30. The owed amount stands at a notable Rs 325.52 crore as per the latest details.

In a further blow, SBI insists that Rs 281.62 crore is due immediately to bring the account back to order, highlighting a serious financial situation for MTNL. The bank is pushing for information regarding MTNL's property monetisation projects, including one involving NBCC.

Legal actions loom as SBI, joined by other banking institutions including Punjab National Bank and Union Bank, prepares to address the non-payment situation rigorously. MTNL's financial struggle is marked by substantial borrowings and a desperate request for government assistance.

(With inputs from agencies.)