Mahanagar Telephone Nigam Limited (MTNL), a state-run telecom operator, has yet again defaulted on a loan repayment. This time, the company has paid not repaid Rs 86.59 billion ($990.48 million) to a group of public sector banks. Out of the total amount, the principle amount is Rs 77.94 billion and Rs 8.65 billion in overdue interest to lenders including the State Bank of India, Union Bank of India, Bank of India, and Punjab National Bank.
Read More - Indian Telcos to See Improved Operating Profits in FY26
MTNL has been struggling to generate revenues from services. The company has been struggling to add subscribers either. MTNL has been surviving on government support for a very long time. The company has plenty of debt on its shoulders, and is in a very hard situation, meaning it is unlikely that it will be able to pay it off on time.
Read More - Reliance Jio Removes Rs 249 Plan from Offerings
This is not the first time that MTNL has missed out on payment. The telco's total debt has mounted to Rs 345.77 billion ($3.96 billion) as of July 31, 2025. This debt includes sovereign-guaranteed bonds and loans from the Department of Telecommunications (DoT).
