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SBI classifies MTNL loan a/c as sub-standard NPA

SBI classifies MTNL loan a/c as sub-standard NPA
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New Delhi: State Bank of India (SBI) has declared loan accounts of debt-ridden state-owned MTNL as sub-standard non-performing assets due to non-payment of instalments and interest since June 30, the telecom firm said in a regulatory filing.

The total outstanding on the MTNL loan account was Rs 325.52 crore as of September 30, according to the SBI letter dated October 1 shared by the company with the stock exchanges.

“State Bank of India (SBI) vide its letter dated October 1, 2024, has informed that Term Loan Accounts Number 36726658903 of MTNL has changed to NPA - Sub Standard category with effect September 28, 2024, due to non-payment of interest and instalment,” MTNL said. Banks classify those accounts as NPA - Sub Standard category accounts whose default period is less than 12 months and have the potential to clear dues.

SBI, in the letter, said that Rs 281.62 crore is overdue, which needs to be paid immediately to regularise the account. It has sought the status of the government assurance to clear MTNL dues. SBI has sought details of various monetisation projects on which MTNL is working, including its agreement with NBCC to develop 13.88 acres of land here into a residential and commercial space.

The public sector bank said that it will be forced to take legal action against the state-owned telecom firm if it fails to make scheduled payments.

“...the bank will be constrained to institute legal proceedings for the recovery of the said entire loan, along with interest and take such other steps as may be available to the bank, including enforcement of securities without any further reference to you (MTNL) in the matter and entirely at your costs and consequences,” SBI said.

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