New Delhi: Clouds of crisis have loomed over the public sector telecom company MTNL (Mahanagar Telephone Nigam Limited). This debt-ridden company has been declared an NPA (Non-Performing Asset) by the State Bank of India (SBI). This means that MTNL is now unable to repay its debt. SBI has warned that if the company does not pay Rs 325.53 crore soon, then a penalty and interest will be imposed on it.

Ultimatum to repay the loan by 30 September

MTNL itself has informed in the exchange filing that SBI has put it in the NPA category. MTNL had to repay the loan to SBI by September 30, 2024, but the company failed to do so. Earlier, Punjab National Bank (PNB) and some other banks had also taken similar action against MTNL.

More action can be taken by many banks.

After this action of SBI, MTNL may face more troubles. SBI has said that if MTNL pays Rs 281.62 crore immediately, then its account can be restarted. If this does not happen, then Union Bank of India, Bank of India, and other banks can also take strict action against MTNL.

Preparations to sell property in Mumbai and Delhi

MTNL has a huge debt of about Rs 31,944.51 crore, to repay which the company has now planned to sell its assets. MTNL has prepared to sell 158 properties located in Mumbai and Delhi, and has also decided to rent out some properties.

MTNL is in a critical situation as it is in trouble

MTNL's current financial crisis may push it deeper into the debt trap. If the company is unable to repay the bank loan soon, it may face more difficulties, which has raised a big question mark on its services and future.