Mahanagar Telephone Nigam (MTNL) was stuck in a 5% lower circuit at Rs 52.14 after State Bank of India (SBI) downgraded the company’s term loan account to non-performing asset (NPA) in due to non-payment of contributions.
Shares of State Bank of India slipped 3.36 per cent to Rs 769.80 on BSE.
The State Bank of India has classified MTNL’s term loan agreement as a non-performing asset (NPA) due to late payments and interest. The total outstanding amount is Rs 325.53 crore, of which Rs 281.62 crore is overdue.
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The bank asked MTNL to immediately pay the overdue amount in order to regularize the account and avoid penal interest rate. Further, the bank sought clarification on the status of the government’s plan to pay MTNL dues and the land monetization plan.
Mahanagar Telephone Nigam provides telecommunication services in the geographical area of Mumbai and Delhi.
The company’s consolidated net loss narrowed to Rs 773.46 crore in the first quarter of FY25, compared to a net loss of Rs 851.93 crore recorded in the first quarter of FY24. fell 7.8% YoY to Rs 183.85 in Q1FY25.
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First publication: October 7, 2024 | 4:44 p.m. STI
