Latest news with #MTNL
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Business Standard
6 days ago
- Business
- Business Standard
Battling losses and loans, one state-owned telco pulls ahead of another
BSNL and MTNL have needed state support but their financial trajectories are now diverging Jayant Pankaj Listen to This Article The Department of Telecommunications recently approached the Finance Ministry once again to seek funds to help repay the mounting debt of MTNL, which provides telecom services in Delhi and Mumbai. BSNL, which provides services in the rest of the country, has needed help as well, marking the two state-owned telecom companies' financial distress. From FY15 to FY25, BSNL reported cumulative net losses of Rs 85,001 crore. MTNL's losses were Rs 31,814 crore (as of December 2024). However, there is a contrast in the companies' recent financial trajectories. BSNL, short for Bharat Sanchar Nigam Limited, is turning around: it reported net
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Business Standard
22-05-2025
- Business
- Business Standard
MTNL shares up 7% after DoT approaches finance ministry to repay co's debt
Mahanagar Telephone Nigam (MTNL) share price jumped 6.6 per cent, logging an intraday high at ₹47.04 per share on BSE. The stock gained after department of telecom (DoT) once again approached the finance ministry seeking funds to repay the liabilities. MTNL, a government-owned telecom company, is overseen by the DoT, which is responsible for policymaking and regulation in the telecom sector. At 1:304 PM, MTNL shares were up 3.85 per cent at ₹45.8 per share on the BSE. In comparison, the BSE Sensex was down 1.18 per cent at 80,634.49. The market capitalisation of the company stood at ₹2,885.40 crore. The 52-week high of the stock was at ₹101.88 per share and the 52-week low of the stock was at ₹32.7 per share. Meanwhile, MTNL's total outstanding dues to public sector banks (PSBs) is ₹8,415.55 crore. In February, Business Standard reported that the finance ministry had rejected MTNL's request that PSBs should take any kind of haircut on their debt. In a written reply to the Lok Sabha, Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar said BSNL and MTNL are monetising only those land and building assets, which are not required for their own use in the foreseeable future. For these, it has the rights to transfer ownership. The minister said that between 2019 and January 2025, the earnings of MTNL from monetisation of non-core (land and buildings) and core (tower and fibre) assets are ₹2,134.61 crore and 258.25 crore, respectively. ALSO READ: In August 2024, Chandra Sekhar informed Rajya Sabha that MTNL had sought ₹1,151.65 crore to meet the payment of interest on sovereign guarantee bonds (SGBs) for 2024-25. According to the latest data, several PSBs have classified loans to MTNL as non-performing assets (NPAs), with outstanding dues across both principal and interest components. The seven PSBs with exposure to MTNL are Union Bank of India (₹3,664.09 crore), Indian Overseas Bank (₹2,393.81 crore), Bank of India (₹1,085.20 crore), Punjab National Bank (₹467.65 crore), State Bank of India (₹354.41 crore), UCO Bank (₹268.63 crore) and Punjab & Sind Bank (₹181.76 crore). About MTNL MTNL was set up in 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros Delhi, the political capital and Mumbai, the financial capital of India.
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Business Standard
21-05-2025
- Business
- Business Standard
DoT once again knocks on finance ministry's door to repay MTNL debt
The total outstanding dues to the PSBs of MTNL is Rs 8,415.55 crore Asit Ranjan Mishra New Delhi Listen to This Article After the finance ministry rejected a department of telecom (DoT) proposal for a partial debt waiver on the outstanding dues of Mahanagar Telephone Nigam Limited (MTNL), the DoT has once again approached the ministry seeking funds to repay the liabilities. 'The DoT has sent a proposal to the finance ministry seeking additional funds. The ministry is yet to take a call. It should be doing something with MTNL's assets. DoT should come up with a clear cut plan,' a senior government official said.
India.com
13-05-2025
- Business
- India.com
Big government company defaults on massive loan of Rs 8300 crore; Modi govt steps in to..., its name is...
PM Modi- File image MTNL bankruptcy update: In a significant move aimed at saving the historic Mahanagar Telephone Nigam Limited (MTNL) from bankruptcy, the central government of India led by PM Modi has taken a big step. For those unversed, MTNL has been continuously defaulting on loans despite getting a bailout package from the government. In the recent update on the public sector telecommunications company, it has been reported that a meeting will be held with government banks on May 16 under the leadership of Cabinet Secretary TV Somanathan which will be decided that MTNL's account will not declared as (Non Performing Asset) NPA despite loan default. Here are all the details you need to know about how the government is planning to save MTNL from bankruptcy. MTNL defaults on over Rs 8,300 crore loan repayments, debt surges MTNL earlier informed in April that it has defaulted on loan repayments of over Rs 8,300 crore to multiple banks, as per a report carried by news agency IANS. The telecom firm informed in its stock exchange filing that it had failed to repay dues to several public sector banks, including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank. Details from MTNL filing The filing also disclosed that MTNL defaulted on both principal and interest payments in March 2025. The total outstanding principal amount is Rs 7,794.34 crore, while the interest overdue stands at Rs 551.90 crore. 'The total outstanding principal amount stands at Rs 7,794.34 crore, while the interest due is Rs 482.97 crore,' MTNL said in its filing. The filing included a detailed breakdown of defaults with each lender. Union Bank of India is the largest creditor, with MTNL owing it over Rs 3,633 crore, followed by Indian Overseas Bank (Rs 2,374 crore), and Bank of India (Rs 1,077 crore). (With inputs from agencies)
News18
13-05-2025
- Business
- News18
Govt Moves To Shield MTNL From NPA Tag Amid Rs 8,346 Crore Loan Default
Last Updated: A high-level meeting has been scheduled for May 16 under the chairmanship of Cabinet Secretary TV Somanathan to decide the immediate fate of MTNL's debt-laden balance sheet In a renewed bid to stave off the financial collapse of state-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL), the Centre has moved to prevent its ballooning defaults from triggering a full-blown banking crisis. A high-level meeting has been scheduled for Friday, May 16, under the chairmanship of Cabinet Secretary TV Somanathan to decide the immediate fate of MTNL's debt-laden balance sheet. Senior government officials including Economic Affairs Secretary Ajay Seth, Financial Services Secretary M Nagaraju, Expenditure Secretary V Vualnam and Telecom Secretary Neeraj Mittal, will sit down with chiefs of major public sector banks to discuss a path forward. The core agenda of the meeting is to ensure MTNL's defaults, despite being substantial, do not lead to the company being formally classified as a non-performing asset (NPA). The meeting comes in the wake of MTNL's regulatory filing on April 19, in which it disclosed a massive loan default of Rs 8,346 crore between August 2024 and February 2025 – money borrowed from seven state-run banks. The company, once a flagship in the telecom sector, now finds itself on life support, weighed down by a total debt burden of Rs 33,568 crore as of March 31, 2025. According to filings, the largest chunk of the default – Rs 3,633.42 crore – is owed to Union Bank of India. Indian Overseas Bank follows with unpaid dues of Rs 2,374.49 crore. Bank of India is short Rs 1,077.34 crore, while Punjab National Bank, State Bank of India, and UCO Bank are awaiting payments of Rs 464.26 crore, Rs 350.05 crore, and Rs 180.3 crore respectively. All of these include missed interest and principal payments. Government insiders suggest the May 16 meeting is likely to result in instructions to lenders not to classify MTNL's account as an NPA – at least for now – in order to avoid setting off alarm bells across the financial system. The move is seen as part of a broader effort to prevent further exposure risks and delay formal insolvency proceedings, even as the company remains in deep financial distress. Watch India Pakistan Breaking News on CNN News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! First Published: May 13, 2025, 15:46 IST
