Public sector Union Bank of India has frozen all bank accounts of government telecom company MTNL. The bank has frozen all the accounts of debt-ridden government telecom company MTNL for not paying the dues. Mahanagar Telephone Nigam Limited (MTNL) informed the stock market about this on Wednesday. According to the news of Bhasha, the company said that Union Bank of India informed the company on August 21 to freeze all its accounts for not repaying the loan.
Default in bank loan payment of Rs 422.05 crore
According to the news, the telecom company said that you are informed that Union Bank of India has informed MTNL through its letter dated August 21 that its account has been put in non-performing asset (NPA) from August 12, 2024. Due to this, all our accounts with Union Bank of India have been automatically frozen. In early August, MTNL had informed the stock markets that it had defaulted on bank loan payments of Rs 422.05 crore.
These banks also have dues
According to the details shared by MTNL, it has not paid Rs 155.76 crore to Union Bank of India, Rs 140.37 crore to State Bank of India, Rs 40.33 crore to Bank of India, Rs 40.01 crore to Punjab & Sind Bank, Rs 41.54 crore to Punjab National Bank and Rs 4.04 crore to UCO Bank on the loans taken.
The telecom company had raised a total loan of Rs 5,573.52 crore from these banks. The loss-making telecom company has borrowed a total of Rs 7,873.52 crore from banks and financial institutions and the company’s total debt is Rs 31,944.51 crore. The company’s business has been in a slump for several consecutive years. The company has lost a large number of its customers in the last few years.
