Mahanagar Telecom Nigam Ltd. (MTNL) added slippages of Rs 1,094 crore to Bank of India’s results for the July-September quarter, leading the lender to make provisions of Rs 200 crore. Total slippages for the quarter reached Rs 2,546 crore, up from Rs 1,930 crore in the previous quarter. Besides MTNL, slippages included Rs 702 crore from agriculture loans, Rs 475 crore from MSMEs, and Rs 211 crore from retail accounts.
“Without this, our slippages would have been lower,” said Rajneesh Karnatak, MD and CEO of Bank of India, in an interview with NDTV Profit. Although he did not disclose the name of the public sector account, sources confirmed it as MTNL. Earlier, State Bank of India had also classified MTNL as a non-performing asset.
MTNL has struggled to meet its debt obligations due to a cash crunch, with no clear resolution plan yet in place despite ongoing discussions. In August, MTNL disclosed loan payment defaults of Rs 422 crore to banks, including Union Bank of India, Bank of India, Punjab & Sind Bank, Punjab National Bank, and UCO Bank.
Karnatak noted that banks are actively in talks with MTNL’s management, hoping to establish a resolution plan soon, potentially involving debt restructuring.
