With loans to MTNL turning into NPAs, PSBs may agree to 20% haircut

They have Rs 8,144 cr exposure to troubled telco

Public sector lenders to the ailing Mahanagar Telephone Nigam Ltd (MTNL) may agree to a 20 per cent haircut on their Rs 8,144 crore exposure to the state-owned telecom firm, with the loans turning into non-performing assets (NPAs).

 

The joint lenders’ forum for MTNL, comprising seven public sector banks (PSBs), recently discussed the matter and communicated its stance to the Department of Financial Services, multiple sources said.

 

“MTNL had offered to pay 40 per cent of its dues with a 60 per cent haircut to the PSBs a few months ago. But the proposal wasn’t acceptable to us. As a