MTNL defaults on ₹8,585 crore loans from seven public sector banks

New Delhi, Jul 15, 2025

The banks include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank

Mahanagar Telephone Nigam Limited (MTNL) on Tuesday said that it has defaulted on the payment of principal and interest on loans amounting to ₹8,584.93 crore from seven public sector banks (PSBs) as of June 30, 2025.

The PSBs include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank, MTNL said in a BSE filing.

According to the company, the total overdue amount includes ₹7,794.34 crore in principal and ₹790.59 crore in interest. The defaulted obligations are part of the company's overall borrowings of ₹8,585 crore from banks.

The largest default is with Union Bank of India, where the company has an outstanding of ₹3,733.22 crore, comprising ₹3,334.57 crore in overdue principal and ₹398.65 crore in overdue interest.

Indian Overseas Bank is owed ₹2,434.13 crore, with ₹2,300 crore in principal and ₹134.13 crore in interest.

Other defaults range between:

Bank of India: ₹1,121.09 crore (₹999.54 crore principal)
Punjab National Bank: ₹474.66 crore (₹432.16 crore principal)
State Bank of India: ₹363.43 crore (₹313.9 crore principal)
UCO Bank: ₹273.58 crore (₹245.83 crore principal)
Punjab and Sind Bank: ₹184.82 (₹168.34 crore principal)

MTNL also said that its total debt stands at ₹34,484 crore. This figure comprises bank loans of ₹8,585 crore, sovereign guarantee bonds worth ₹24,071 crore, and a ₹1,828 crore loan from the Department of Telecommunications for SG bond interest payments.

Shares of MTNL closed at ₹49.92 apiece on the BSE on Tuesday.

[The Business Standard]