SBI's notice to MTNL presents an opportunity for ownership change

With mounting debts and dwindling market share, the need for a decisive government strategy is urgent

Last week, Mahanagar Telephone Nigam Limited (MTNL) was in the news. India’s largest bank, State Bank of India (SBI), informed MTNL that its loan account, with a total debt of Rs 325 crore, had become a non-performing asset (NPA). Both the instalment repayment and interest payment under this account had become overdue after June 30 this year. Since the overdue amount remained uncleared for more than 90 days, SBI classified the loan account as sub-standard. It also warned MTNL that failure to make immediate payment of the overdue sums would lead to the levy of a penal