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Key Points

Mahanagar Telephone Nigam Limited (MTNL) has reportedly defaulted on over Rs 8,300 crore in loan repayments to multiple public sector banks. The telecom operator's financial troubles are evident in its massive outstanding liabilities, which total Rs 33,568 crore across various financial instruments. Union Bank of India stands as the largest creditor, with MTNL owing over Rs 3,633 crore. The company's stock market performance reflects its challenging financial landscape, with shares experiencing volatility in 2025.

Key Points: MTNL Rs 8,300 Crore Loan Default Shocks Banking Sector

  • MTNL defaults on massive loan repayments to major public banks
  • Union Bank of India largest creditor with Rs 3,633 crore dues
  • Telecom firm's total liabilities exceed Rs 33,000 crore
  • Share prices decline despite annual gains
2 min read

MTNL defaults on over Rs 8,300 crore loan repayments, debt surges

MTNL defaults on massive Rs 8,300 crore loan, revealing critical financial distress across multiple public sector banks

"The total financial indebtedness of the company has reached Rs 33,568 crore - MTNL Stock Exchange Filing"

Mumbai, April 19

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.

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.

- IANS

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Reader Comments

R
Rajesh K.
This is really concerning. MTNL was once a pioneer in telecom services. How did things get so bad? The government needs to step in before more public money is lost. 😟
P
Priya M.
Not surprised at all. Their service quality has been declining for years while private operators kept improving. Maybe it's time to rethink public sector telecom companies.
A
Amit S.
Rs 33,568 crore total debt?! That's insane money. Where did all this go? Would love to see a detailed audit of their spending over the past decade.
S
Sunita R.
I still use MTNL broadband because it's cheaper, but now I'm worried about service continuity. Hope they sort this out soon!
V
Vikram J.
While the situation is bad, we should remember MTNL employs thousands of people. Any resolution should protect jobs while fixing the financial mess.
N
Neha T.
The article could have explained more about why MTNL failed to modernize when private players did. That context would help understand how we got here.

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