CORPORATE
SBI downgrades MTNL’s term loan account as an NPA, asks it to repay loan quickly
- IBJ Bureau
- Oct 05, 2024
State Bank of India (SBI) has downgraded MTNL’s term loan account to a non-performing asset (NPA) with effect from September 28, citing non-payment of interest and instalment.
MTNL has shared the letter from SBI that states that the total outstanding in the account at over Rs 325.52 crore as on September 30, with an overdue amount of Rs 281.62 crore needed to regularise the account. “This amount is due with immediate effect and to be paid immediately,” the letter by SBI has added.
“Since 90 days have passed now, account category is NPA Sub-Standard with effect on 28-09-2024,” SBI has said in its communication to the telecom service provider, asking for the immediate payment to upgrade the account.
The bank has also sought clarity from MTNL regarding news reports stating that the Centre will pay MTNL dues and that the DoT has stated there will be no default. “We request to provide us with status of our term loan facility in view of these media reports,” SBI’s letter dated October 1 has added, and this has been shared by MTNL with stock exchanges on October 4.
The bank also sought clarification on the current status of the land monetisation plan that was provided “with granular details, along with year-wise cash flows very recently”.
Report By
View Reporter News