State-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL) has defaulted on loan repayments amounting to Rs 8,346.24 crore to several public sector banks, the company disclosed in a stock exchange filing on Saturday, April 19, 2025. According to the filing, MTNL defaulted on both principal and interest payments to the banks in March 2025.
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Loan Default Details
The default, which occurred in March 2025, includes Rs 7,794.34 crore in outstanding principal and Rs 551.90 crore in overdue interest and penal charges. The filing included a detailed breakdown of defaults with each lender. MTNL's accounts with the lenders have been classified as Non-Performing Assets (NPAs) as early as August and September 2024, with the latest default reported in February 2025, concerning Indian Overseas Bank.
Breakdown of Banks
Among the affected lenders, Union Bank of India has the highest exposure, with dues of Rs 3,633.42 crore. It is followed by Indian Overseas Bank (Rs 2,374.49 crore) and Bank of India (Rs 1,077.34 crore). Other creditors include Punjab National Bank (Rs 464.26 crore), State Bank of India (Rs 350.05), UCO Bank (Rs 266.39 crore), and Punjab and Sind Bank (Rs 180.30 crore).
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MTNL's Total Financial Indebtedness
MTNL stated that its total financial indebtedness stands at Rs 33,568 crore. This includes Rs 8,346 crore in 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 service interest payments on the bonds.
