MTNL Faces Default on Loan Payments Exceeding Rs 8,300 Crore, Debt Escalates
Synopsis
On April 19, MTNL reported a default on loan repayments exceeding Rs 8,300 crore across multiple banks, raising concerns over its financial health. The telecom operator's total liabilities have surged to Rs 33,568 crore, with significant debts owed to various public sector banks.
Key Takeaways
MTNL has defaulted on over Rs 8,300 crore in loans.
The company owes money to several major banks.
MTNL is classified as having Non-Performing Assets.
The overall financial liability has reached Rs 33,568 crore.
MTNL's stock has seen a mixed performance over the last year.
Mumbai, April 19 (NationPress) Mahanagar Telephone Nigam Limited (MTNL) announced on Saturday that it has defaulted on loan repayments totaling over Rs 8,300 crore to various banks.
As per its disclosure to the stock exchange, the telecom company was unable to make payments to several public sector banks, including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.
The filing revealed that MTNL defaulted on both principal and interest payments in March 2025. The total outstanding principal is Rs 7,794.34 crore, while overdue interest amounts to Rs 551.90 crore. Including penal charges, the total default sum reaches Rs 8,346.24 crore.
MTNL specified, "The total outstanding principal amount stands at Rs 7,794.34 crore, while the interest due is Rs 482.97 crore."
The filing offered a detailed account of defaults with each lender. Union Bank of India is the principal creditor, with MTNL owing it over Rs 3,633 crore, followed by Indian Overseas Bank (Rs 2,374 crore) and Bank of India (Rs 1,077 crore).
MTNL’s accounts with these banks have been marked as Non-Performing Assets (NPAs) as early as August and September 2024, with the latest default for Indian Overseas Bank reported in February 2025.
The company further disclosed, "The total financial liability of MTNL -- encompassing both short- and long-term obligations -- has soared to Rs 33,568 crore. This comprises Rs 8,346 crore in bank loans, Rs 24,071 crore in Sovereign Guarantee (SG) Bonds, and Rs 1,151 crore borrowed from the Department of Telecommunications (DoT) to service interest on those bonds.”
On the stock market, MTNL shares concluded at Rs 43.80 on Thursday, reflecting a decline of 0.41 percent on the National Stock Exchange (NSE).
Although the stock has appreciated nearly 25 percent over the last 12 months, it has dropped approximately 13 percent in the year 2025.
