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Key Points

MTNL has defaulted on loan repayments worth Rs 8,585 crore to seven major public sector banks. The company’s total debt obligations have surged to Rs 34,484 crore, including sovereign guarantee bonds. The Centre has approved asset monetization to help the struggling telecom firm. Meanwhile, MTNL’s stock performance has declined, delivering negative returns to investors.

Key Points: MTNL Defaults on Rs 8,585 Crore Loan to Seven PSU Banks

  • MTNL defaults on Rs 8,585 crore to seven PSU banks
  • Total debt obligations reach Rs 34,484 crore
  • Centre approves asset monetization for MTNL and BSNL
  • Stocks decline by 5.51% over the past year
2 min read

MTNL defaults on Rs 8,585 Crore loan to seven PSU banks, fails to repay principal, interest

MTNL fails to repay Rs 8,585 crore to major PSU banks, including SBI and PNB, amid mounting debt and asset monetization efforts.

"MTNL has defaulted on Rs 3,733 crore to Union Bank of India alone. – Exchange Filing"

New Delhi July 16

State-run Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on the payments of both principal and interest to seven major public sector banks, totalling Rs 8,585 crore.

The telecom company shared the information in an exchange filing.

The seven lender banks are 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 telecom company's filing, the defaulted amounts of the Union Bank of India sum to Rs 3,733.22 crore, the Bank of India Rs 1,121.09 crore, the Punjab National Bank Rs 474.66 crore and the State Bank of India Rs 363.43 crore.

The telecom company added that it has defaulted on Rs 273.58 crore of dues to UCO Bank, Rs 184.82 crore to Punjab and Sind Bank and Rs 2,434.13 crore to Indian Overseas Bank, the filing shows.

Loss-making MTNL's total debt obligations reached Rs 34,484 crore as of June 30 of the current year.

The total debt obligation includes Rs 24,071 crore of sovereign guarantee (SG) bonds and a Loan for DoT for paying SG Bond Interest of Rs 1828 Crore, according to the filing.

As per the firm, loan payment failures have occurred from August 2024 until February 2025.

Recently, the Centre cleared the Non-Auction Route for assets valued below Rs 10 crore to monetise the assets of state-run entities, including BSNL and MTNL. Under the provision, telecom firms determine the pricing, while the Central Public Works Department (CPWD) determines the valuation. Assets valued above Rs 100 crore will be monitored by the National Land Monetisation Corporation (NLMC).

MTNL has been selling non-core assets like land, buildings, towers, and fibre to generate revenue. In September last year, the Public sector undertaking NBCC (India) Limited developed a 13.88-acre land parcel of MTNL.

MTNL has a total of forty-one land and building parcels in Delhi. Out of these land and building parcels, about 14 venues are vacant, as per a document provided by the company on its website. The other venues of the PSU have either permanent buildings or temporary buildings.

At the time of filing this report, the stocks of MTNL were trading at Rs 50.49 after touching the lowest levels of Rs 49.38.

In the last one year, the firm's stocks have given a negative return of -5.51 per cent to the investors.

- ANI

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Reader Comments

P
Priya S
As a former MTNL customer, I'm not surprised. Their services were outdated while private players were innovating. Government PSUs need complete overhaul - less bureaucracy, more professionalism. Hope they monetize assets properly this time.
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Aditya G
₹34,484 crore total debt?! This is alarming. Why are we still pumping money into loss-making PSUs? Better to privatize or shut down. Our banking sector is already under stress, can't afford more NPAs.
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Shweta Y
While I understand the frustration, we must remember MTNL provided affordable services to many middle-class families for decades. The government should find a balanced solution - maybe merge with BSNL properly with clear roadmap.
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Varun X
The root problem is political interference in PSUs. MTNL had potential but was ruined by frequent leadership changes and lack of vision. Now selling land assets is just temporary fix, not solution. Need complete reform!
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Nisha Z
My father retired from MTNL after 35 years of service. It's heartbreaking to see its condition today. Government should protect employees' interests while restructuring. They gave their best years to this company.

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