Page 3 - Mtnl

MTNL shares drop 5% after PNB downgrades co's loan account to NPA

The fall in the stock price follows MTNL's announcement to the exchanges, in which it said that Punjab National Bank (PNB) has downgraded the loan accounts of the company to NPA

Govt to pay MTNL's bond interest payment again, say DoT officials

But the government is unwilling to pay for loans taken by MTNL, say sources

NBCC, MTNL sign pact for Rs 1,600 cr worth housing-cum-commercial project

State-owned NBCC (India) Ltd has signed an initial pact to develop a Rs 1,600-crore worth housing-cum-commercial project on a 14-acre land parcel owned by MTNL on Pankha Road in the national capital. In a statement on Thursday, NBCC said that it has signed a Memorandum of Understanding (MoU) with Mahanagar Telephone Nigam Ltd (MTNL) to collaborate and "develop a prominent land parcel of MTNL measuring approximately 13.88 acres located on Pankha Road, New Delhi." This project aims to transform the land into a state-of-the-art residential/ commercial space, leveraging the expertise and resources of both organizations. "The project is valued at Rs 1600 crore approximately," NBCC said. The MoU was signed in the presence of K P Mahadevaswamy, CMD, NBCC, A Robert J. Ravi, CMD, MTNL. MTNL, a leading public sector telecommunications company and NBCC, a Navratna enterprise under the Ministry of Housing & Urban Affairs, have committed to this development project. "NBCC will act as the ...

NBCC shares surge 5% on inking MoU with MTNL for Rs 1,600-cr project

The uptick in NBCC share price came after the company announced that it has inked a memorandum of understanding (MoU) with MTNL for a project worth Rs 1,600 crore.

Union Bank freezes accounts of telecom firm MTNL over non-payment of dues

Union Bank of India has frozen all accounts of state-run telecom company MTNL for non-payment of dues, a regulatory filing said on Wednesday. Union Bank of India informed the company on August 21 about freezing of all its accounts over non-payment of loans, debt-ridden MTNL said. "This is to inform you that Union Bank of India vide its Letter... dated August 21, 2024 has informed MTNL that its account has slipped to NPA with effect from August 12, 2024 due to which all accounts of MTNL with Union Bank of India have been freezed automatically," MTNL said. Earlier this month, MTNL informed stock exchanges that it has defaulted on bank loan payments worth Rs 422.05 crore. According to the details shared by MTNL, it has defaulted on the payment of Rs 155.76 crore on debt raised from Union Bank of India, Rs 140.37 crore from State Bank of India, Rs 40.33 crore from Bank of India, Rs 40.01 crore from Punjab & Sind Bank, Rs 41.54 crore from Punjab National Bank, and Rs 4.04 crore from ...

MTNL-BSNL service agreement awaits as DoT checks for tax implications

The 10-year service agreement is crucial for MTNL which is struggling with a heavy debt load of Rs 31,944.51 crore as well as facing operational challenges

MTNL board approves 10-year service pact, share-sale proposal with BSNL

The MTNL board has approved a service agreement with BSNL for a period of ten years, and also a slew of other proposals, including share-sale in overseas subsidiary Mahanagar Telephone (Mauritius). The board, during its meeting, has also approved sale of shares of MTNL in MTNL STPI IT Services Ltd or MSITS, according to regulatory filing by MTNL. The board "accorded its approval to enter into a service agreement between BSNL and MTNL for a period of 10 years or unless it is revoked earlier by giving a notice of six months or extended by mutual consent between the parties, subject to approval of the said service agreement by Department of Telecom / Ministry of Company Affairs ," it said. It has also approved a proposal related to sale of shares of MTNL in Mahanagar Telephone (Mauritius) Ltd or MTML - an overseas wholly-owned subsidiary - in line with applicable Department of Investment and Public Asset Management (DIPAM) guidelines and other regulatory processes. The board has also

Telecom company MTNL defaults on Rs 422 cr loan payments from various banks

State-owned telecom company MTNL has defaulted on bank loan payments worth Rs 422.05 crore, a regulatory filing said on Monday. The total default amount comprises Rs 328.75 crore default on instalment of principal and Rs 93.3 crore towards interest on debt for June and July. According to the details shared by MTNL, it has defaulted on the payment of Rs 155.76 crore on debt raised from Union Bank of India, Rs 140.37 crore from State Bank of India, Rs 40.33 crore from Bank of India, Rs 40.01 crore from Punjab & Sind Bank, Rs 41.54 crore from Punjab National Bank and Rs 4.04 crore from UCO Bank. The telecom firm earlier raised Rs 5,573.52 crore in debt from these banks. The loss-making telecom firm has total borrowings of Rs 7,873.52 crore from banks and financial institutions, and the total debt of the company stands at Rs 31,944.51 crore. MTNL has sought Rs 1,151.65 crore from the government for payment of interest arising out of sovereign guarantee bonds in the current ...

MTNL seeks Rs 1,151.65 cr for sovereign guarantee bonds interest in FY25

Debt-ridden state-run telecom firm MTNL has sought Rs 1,151.65 crore for payment of interest arising out of sovereign guarantee bonds in the current fiscal, Parliament was informed on Thursday. Minister of State for Communications Pemmasani Chandra Sekhar in a written reply to the Rajya Sabha said the government has in fact taken various steps for revival of MTNL and BSNL in 2019 and 2022 that include revival package to both companies. "Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore to meet the payment of interest on Sovereign Guarantee Bonds for Financial Year 2024-25," Sekhar said. The minister was replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses. He said the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL that brought down operating costs. "In 2022, revival packa

This PSU telecom stock has zoomed 110% in 2 weeks; hits over 14-year high

MTNL share price was locked in the 5% upper circuit at Rs 88.06, MTNL stock is quoting at its highest level since January 2010

MTNL defaults on Rs 37.5 crore Punjab & Sind Bank loan instalment

The telco owes Rs 5480 crore to the bank, it told exchanges

MTNL stock soars 19% as govt deposits Rs 92 cr to pay bond interest dues

In past four trading days, the stock has zoomed 50% on reports that the government was considering the option of handing over operations of telecom company to Bharat Sanchar Nigam Limited (BSNL).

MTNL deposits bond interest payout after invocation of govt guarantee

The struggling state-run company had received Rs 936 million ($11.21 million) from the government for the interest payment as per the guarantee agreement for the bonds

Govt deposits Rs 92 cr to clear immediate bond interest dues of MTNL

The government has stepped in to make a Rs 92 crore payment towards bond dues of MTNL, a government source said, adding that another Rs 64 crore would also be paid in coming days towards interest obligations that are slated to become due in August. The helping hand from the government is significant as it averts a crisis-like situation for the telecom corporation which has been teetering on the brink with regard to its debt obligations, particularly in this case government-guaranteed bonds. Last week, the debt-laden firm had expressed its inability to make interest payments to certain bondholders due to paucity of funds. The government sources said Rs 92 crore is being deposited in an escrow account for payment towards interest on bond dues. Another Rs 64 crore would be paid later this month to clear interest dues that slated to come up in August, sources said. The second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024. Amid mounting financial

MTNL stock hits 13-year high, up 31% in 4 days; check why

Reports claim that the government was considering the option of handing over operations of MTNL to BSNL through an agreement, instead of pursuing a merger route.

Centre to pay MTNL's bond interest by Wednesday, says DoT officials

With this date having been passed, the government now has to step in and deposit the necessary funds in the designated trust and retention account at least three days before the due date

Ind-Ra to monitor MTNL as interest payment default triggers govt guarantee

In July 2023, MTNL raised Rs 2,480 crore ($296.97 million) through 10-year government-guaranteed bonds at a semi-annual coupon of 7.59 per cent and the interest payment is due on July 20

Govt likely to pay bond interest dues of MTNL, assuring no default

The government will pay the bond dues of ailing Mahanagar Telephone Nigam Ltd (MTNL), a DoT source said assuring that there will be no default, and that the amount will be paid before the due date of July 20. The move assumes significance as it would avert a looming crisis for the telecom corporation which is being seen teetering on the brink with regard to its debt obligations that are becoming due. All eyes are on MTNL, ever since the debt-laden firm last week expressed its inability to make interest payments to certain bondholders due to paucity of funds. Telecom Department sources said that the government will step in and pay the said dues, and asserted that there won't be any default on the same. In this particular case, where the second semi-annual interest (7.59 per cent) on certain bonds is falling due on July 20, 2024, DoT sources said that "the dues will be paid before the date". Amid mounting financial woes, MTNL last week informed in a statutory filing that it is unable

Govt considers handing over MTNL operations to BSNL; merger unlikely

The government is considering the option of handing over operations of Mahanagar Telephone Nigam Ltd (MTNL) to BSNL through an agreement, instead of pursuing a merger route, a source privy to the development said. A final call on this is likely to be taken in a month's time. The source said the option of handing over debt-laden MTNL's operations to Bharat Sanchar Nigam Ltd (BSNL) through an agreement is being looked into. The source said that given MTNL's high debt, a merger with BSNL was not a favourable option. Once the decision is taken, the proposal would be placed before the Committee of Secretaries, and thereafter taken to the Cabinet. Amid mounting financial woes, MTNL this week informed in a statutory filing that it is unable to make interest payment to certain bondholders "due to insufficient funds". "The second semi annual interest with regard to 7.59 per cent MTNL's bond series...is due on July 20, 2024. As per the structured payment mechanism of Tripartite agreement (T

MTNL drops over 2% after Q4 net loss widens; down 12% in three months

MTNL's net loss widened to Rs 783.7 crore on a year-on-year (Y-o-Y) basis, from a net loss of Rs 748.6 crore in the fourth quarter of financial year 2023 (Q4FY23)