State-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) has officially admitted to missing payments on loans taken from seven public sector banks. The total default which includes both principal and interest amounts to Rs 8,584.93 crore.
MTNL informed the stock exchanges about its loan defaults on Tuesday.
A total of seven public sector banks have been affected:
– Union Bank of India
– Bank of India
– Punjab National Bank
– State Bank of India
– UCO Bank
– Punjab & Sind Bank
– Indian Overseas Bank
The overdue principal amount owed to these banks stands at Rs 1,868.61 crore, as per the filing.
MTNL’s Debt Pile Grows to Over Rs 34,000 Crore
MTNL, the loss-making public sector telecom firm has reported a total debt burden of Rs 34,484 crore as of June 30, 2025. According to its stock exchange filing, this includes Rs 8,585 crore in bank loans, Rs 24,071 crore raised through sovereign guarantee bonds and an additional Rs 1,828 crore borrowed from the Department of Telecommunications (DoT) to cover interest payments on those bonds.
Break-up of MTNL’s Rs 8,584 Crore Loan Default
MTNL’s total loan default of Rs 8,584.93 crore includes both principal and interest dues across seven public sector banks. The largest outstanding amount is with Union Bank of India at Rs 3,733.22 crore, followed by Rs 2,434.13 crore with Indian Overseas Bank. Other dues include Rs 1,121.09 crore to Bank of India, Rs 474.66 crore to Punjab National Bank, Rs 363.43 crore to State Bank of India, Rs 273.58 crore to UCO Bank, and Rs 184.82 crore to Punjab & Sind Bank.
MTNL’s loan payment defaults occurred between August 2024 and February 2025. By March 31, 2025, the state-run telecom firm had reported total defaults amounting to Rs 8,346.24 crore for this period.
