MTNL Defaults on Rs.8,585 Crore Loan to 7 Public Sector Banks, Check Bank Wise Amount
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On July 15, 2025, Mahanagar Telephone Nigam Limited (MTNL) has announced that it has missed repayment of loans and interest worth nearly ₹8,585 crore as of June 25, 2025. These dues are owed to seven public sector banks. Recently, Government has also announced New Rules for Sale of Properties of BSNL, MTNL, ITI; Check New Rules Here.
MTNL Defaults on Payment to 7 Govt Banks
The seven government-owned banks to which MTNL has defaulted are given below. The amount MTNL owes to each bank, including both principal and interest, is also given below.
- Union Bank of India – ₹3,733.22 crore
- Bank of India – ₹1,121.09 crore
- Punjab National Bank (PNB) – ₹474.66 crore
- State Bank of India (SBI) – ₹363.43 crore
- UCO Bank – ₹273.58 crore
- Punjab and Sind Bank – ₹184.82 crore
- Indian Overseas Bank (IOB) – ₹2,434.13 crore
| Bank | Date of NPA | O/s | Principal | Overdue Interest | Overdue Principal |
|---|---|---|---|---|---|
| UBI | 12-08-2024 | 3,733.22 | 3,334.57 | 398.65 | 631.62 |
| BOI | 04-09-2024 | 1,121.09 | 999.54 | 121.55 | 281.51 |
| PNB | 09-09-2024 | 474.66 | 432.16 | 42.50 | 232.16 |
| SBI | 28-09-2024 | 363.43 | 313.90 | 49.53 | 313.90 |
| UCO | 28-09-2024 | 273.58 | 245.83 | 27.75 | 245.83 |
| PSB | 08-10-2024 | 184.82 | 168.34 | 16.48 | 163.59 |
| IOB | 03-02-2025 | 2,434.13 | 2,300.00 | 134.13 | – |
| Total | 8,584.93 | 7,794.34 | 790.59 | 1,868.61 |
The overdue principal amount (i.e., the original loan amount not yet paid back) across all seven banks stands at ₹1,868.61 crore. This means that a large part of the unpaid amount includes interest.
MTNL’s Total Debt Position
MTNL’s total financial debt is a massive ₹34,484 crore, which includes:
- Bank loans – ₹8,585 crore
- Sovereign Guarantee (SG) bonds – ₹24,071 crore
- Loans from the Department of Telecommunications (DoT) – ₹1,828 crore (used to pay interest on SG bonds)
This default reflects the severe financial distress of MTNL, which has been struggling with high debt and losses for years. The government has been trying to revive the telecom PSU, but its debt burden continues to grow. Defaulting on such a large sum also puts pressure on public sector banks and can affect the larger telecom and banking ecosystem.
