MTNL Reports Loan Default of Rs 9,812 Crore to 7 Banks Including SBI, PNB and Bank of India

Mahanagar Telephone Nigam Limited (MTNL) has reported a total outstanding bank borrowing of Rs 9,812.04 crore and defaulted on principal and interest payments to seven public sector banks. The list of lenders includes State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India (UBI), Bank of India (BOI), UCO Bank, Punjab and Sind Bank (PSB), and Indian Overseas Bank (IOB).

Despite being in loss, Mahanagar Telephone Nigam Limited (MTNL) is still a Public Sector Undertaking (PSU) of the Government of India as of November 2026. The Government of India holds a 56.25% stake in Mahanagar Telephone Nigam Limited (MTNL).

On the other hand, IDBI Bank – a profitable bank, has been privatised by the Government of India.

MTNL’s Total Outstanding Loan from Seven Banks

As per the latest disclosure, MTNL has total outstanding bank borrowings of Rs 9,812.04 crore. Union Bank of India has the highest outstanding amount at Rs 4,280.59 crore, followed by Indian Overseas Bank at Rs 2,780.11 crore and Bank of India at Rs 1,295.44 crore.

The bank-wise details of outstanding loans are given below:

Bank-Wise Break-up of MTNL’s Principal and Interest Default

The total outstanding amount of Rs 9,812.04 crore consists of Rs 7,794.34 crore in principal and Rs 2,017.70 crore in interest. The total overdue principal amount has been reported at Rs 2,245.72 crore.

The complete details are given below:

(Amount in Rs Crore)

When Did MTNL’s Loan Accounts Become NPA?

MTNL’s loan accounts with these seven banks were classified as Non-Performing Assets (NPAs) between August 2024 and February 2025.

The bank-wise dates of NPA classification are as follows:

MTNL’s Total Financial Indebtedness Stands at Rs 37,633 Crore

Apart from the outstanding bank borrowings of Rs 9,812 crore, MTNL has reported total financial indebtedness of Rs 37,633 crore.

The company’s total financial indebtedness includes bank loans, sovereign guarantee bonds and loans from the Department of Telecommunications (DoT).

The complete break-up is given below:

The company has separately reported that its total outstanding borrowings from banks and financial institutions stand at Rs 9,812 crore. The total principal amount of the obligation has also been mentioned as Rs 9,812 crore.

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