MTNL defaults on over Rs 8,300 crore loan repayments

Union Bank of India is the largest 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)

Mumbai: Mahanagar Telephone Nigam Limited (MTNL) on Saturday said it has defaulted on loan repayments of over Rs 8,300 crore to multiple banks.

According to its stock exchange filing, the telecom firm failed to repay dues 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.

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As per the filing, MTNL defaulted on both principal and interest payments in March 2025. The total outstanding principal amount is Rs 7,794.34 crore, while the interest overdue stands at Rs 551.90 crore. Including penal charges, the overall default amount touches Rs 8,346.24 crore.

“The total outstanding principal amount stands at Rs 7,794.34 crore, while the interest due is Rs 482.97 crore,” MTNL said in its filing. The filing included a detailed breakdown of defaults with each lender.

Union Bank of India is the largest 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 classified as Non-Performing Assets (NPAs) as early as August and September 2024, with the most recent default reported in February 2025 for Indian Overseas Bank.

“The total financial indebtedness of the company — including both short- and long-term liabilities — has reached Rs 33,568 crore. This includes Rs 8,346 crore of bank loans, Rs 24,071 crore worth of Sovereign Guarantee (SG) Bonds, and Rs 1,151 crore borrowed from the Department of Telecommunications (DoT) to pay interest on those bonds,” the telecom operator added in its filing.

On the stock market front, MTNL shares closed at Rs 43.80 on Thursday, slipping 0.41 per cent on the National Stock Exchange (NSE). While the stock has gained nearly 25 per cent over the past 12 months, it has declined by about 13 per cent so far in 2025.