Key Points
New Delhi: State-owned telecommunications firm Mahanagar Telephone Nigam Limited (MTNL) informed the stock exchanges Thursday that Mumbai-based Bank of India has classified all of the loans taken by the company from the bank as non-performing assets (NPAs)..
Concerning as this is, this isnt the first time this year the public sector enterprises (PSUs) loans have been classified as NPAs, and likely not the last..
This comes at a time when the central government has already ploughed a whopping Rs 3.22 lakh croreacross three packages since 2019into the revival of MTNL and Bharat Sanchar Nigam Limited (BSNL), another public sector telecom firm which, incidentally, also remains in loss...
There is no central database of accounts that have been declared NPA, but two former deputy governors of the Reserve Bank of India and three senior bankers in public and private sectors, each with more than 25 years of experience, have told ThePrint that they cant remember any previous incident where a PSUs loans have been designated as NPAs...
Further due to high exposure of loans from banks and financial institutions and heavy repayment schedule of loans as well as interest payment to banks and financial institutions, MTNL is facing liquidity crunch which will be a great threat to MTNL to keep it as an ongoing concern in near future but for the revival plans fructifying in time, it added...
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