One could hear a collective sigh of relief from the Indian banking sector when the bankers learnt that the government was considering a bailout for the Mahanagar Telephone Nigam Limited (MTNL) and the Rashtriya Ispat Nigam Lid (RINL), both Navratna public sector undertakings (PSUs). The telecom and steel ministries have been discussing this with the finance ministry.
A committee of secretaries from the departments of expenditure, investment and public asset management, and telecommunications will take the final call on MTNL’s debt.
On September 25, the State Bank of India (SBI) downgraded its MTNL exposure as a non-performing asset (NPA)
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