Mahanagar Telephone Nigam Limited (MTNL), a major telecommunications company, has recently announced that it has defaulted on loan repayments exceeding Rs 8,300 crore to several banks.
According to an official statement made by MTNL, the company has failed to repay loans to multiple public sector banks. These include prominent banks such as Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.
Default Details
MTNL’s filing with the stock exchange revealed that the company missed both principal and interest payments in March 2025. The total outstanding loan principal is Rs 7,794.34 crore, and the overdue interest amounts to Rs 551.90 crore. When penal charges are included, the total default amount reaches Rs 8,346.24 crore.
To break it down further, the principal outstanding is Rs 7,794.34 crore, with Rs 482.97 crore of interest due, according to MTNL’s filing.
Breakdown of Defaults by Lender
The company’s filing also provided a detailed breakdown of its defaults across different lenders. Union Bank of India is the largest creditor, with MTNL owing over Rs 3,633 crore. Indian Overseas Bank follows with an outstanding amount of Rs 2,374 crore, while Bank of India is owed Rs 1,077 crore.
Non-Performing Assets (NPAs)
MTNL’s accounts with these banks have been classified as Non-Performing Assets (NPAs), meaning they are considered bad loans. This classification started as early as August and September 2024. The most recent default was reported in February 2025, with Indian Overseas Bank being the last to face default.
Company’s Total Financial Debt
MTNL has also reported that its overall financial debt, including both short-term and long-term liabilities, has reached a staggering Rs 33,568 crore. This includes Rs 8,346 crore in bank loans, Rs 24,071 crore in Sovereign Guarantee (SG) Bonds, and Rs 1,151 crore borrowed from the Department of Telecommunications (DoT) to cover interest on those bonds.
