The troubles of the government telecom company Mahanagar Telephone Nigam Limited (MTNL) are not coming to an end. The company has outstanding loans from many banks, the latest case of which is related to Bank of India. MTNL has not been able to repay the bank one thousand crore rupees so far, due to which the bank has had to make a provision of Rs 200 crore in its financial statement for the second quarter of the financial year 2025.
The bank did not name the company
Bank of India MD and CEO Rajneesh Karnataka, while releasing the results of the second quarter of FY 2025, said that the bank did not get back a loan of Rs 1000 crore from a public sector telecom company (which sources have identified as MTNL). Due to this, the bank had to make more provision. Despite the provision, Bank of India earned a net profit of Rs 2374 crore, which is 63% more than the same period last year.
MTNL suffers loss
MTNL has suffered a loss of Rs 3303 crore in the financial year 2024, the main reason for which is the decline in its revenue. The government is now considering various measures to get this giant company out of the crisis. The main reason for the decline in the company’s revenue is the reduction in the cost of cellular services and the decreasing demand for wired telephone lines.
Could not repay the loan even before
This is not the first time MTNL has failed to repay the loan. The company also owes different banks, such as State Bank of India (SBI), including a loan of Rs 326 crore to SBI. SBI has declared MTNL’s account as a non-performing asset (NPA) and ordered immediate repayment of the loan. As of August 30, 2024, the company had a total debt of about Rs 32 thousand crore.