Mahanagar Telephone Nigam Ltd (MTNL) announced on Saturday, March 15, that it has defaulted on ₹8,277 crore in principal and interest payments to seven banks.
According to a regulatory filing, the affected lenders include Union Bank of India (UBI), Bank of India (BOI), Punjab National Bank (PNB), State Bank of India (SBI), UCO Bank, Punjab and Sind Bank (PSB), and Indian Overseas Bank (IOB).
The PSU first defaulted on ₹3,602.44 crore to UBI on August 12, 2024. Subsequent defaults included:
- ₹1,069.22 crore to BOI on September 4
- ₹460.78 crore to PNB on September 9
- ₹345.77 crore to SBI and ₹263.75 crore to UCO Bank on September 28
- ₹178.80 crore to PSB on October 8
- ₹2,356.55 crore to IOB on February 3, 2025
MTNL confirmed the total default amount stands at ₹8,277.31 crore, comprising:
- ₹7,794.34 crore in principal payments
- ₹482.97 crore in overdue interest
- ₹1,450.36 crore in overdue principal
MTNL’s Debt Position
The state-run telecom firm’s total debt currently amounts to ₹33,497 crore, which includes:
- ₹8,277 crore in bank loans
- ₹24,071 crore in sovereign gold bonds
- ₹1,149 crore loan from the Department of Telecommunications (DoT) for sovereign gold bond interest payments
MTNL Earns ₹2,135 Crore from Asset Monetisation
On Thursday, March 13, MTNL shares surged 18.29% to an intraday high of ₹51.18 on the National Stock Exchange (NSE) following reports of ₹2,134.61 crore earned through land and building monetisation until January 2025.
Additionally, the company generated ₹258.25 crore from monetising towers and fibre assets during the same period, according to Minister of State for Communications Pemmasani Chandra Sekhar, who shared the data in the Lok Sabha.
Stock Market Reaction
MTNL’s stock closed at ₹48.88 on March 13, up 13.04% on the NSE.
- Weekly gain: 14.9%
- March gain: 16.3%
- Year-to-date loss: 2.92%
As of March 15, 2025, MTNL’s total market capitalisation stands at ₹3,036.60 crore on the NSE.
