MTNL defaults on ₹8,585 crore principal and interest dues to 7 PSU banks as of June 2025

Telecom operator Mahanagar Telephone Nigam Ltd (MTNL) on Tuesday informed the stock exchanges that it has defaulted on payments of both principal and interest to a group of public sector banks. The total overdue amount stands at nearly ₹8,585 crore.

After the announcement, MTNL shares fell 4.80% to ₹49.59, down ₹2.50 on the day.

The disclosure lists Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank as the lenders involved.

MTNL said the defaults span from August 2024 to February 2025. According to the breakdown, the company owes ₹7,794.34 crore in overdue principal and ₹790.59 crore in unpaid interest.

Here’s a snapshot of the outstanding dues:

• Union Bank of India: ₹3,733.22 crore
• Bank of India: ₹1,121.09 crore
• Punjab National Bank: ₹474.66 crore
• State Bank of India: ₹363.43 crore
• UCO Bank: ₹273.58 crore
• Punjab & Sind Bank: ₹184.82 crore
• Indian Overseas Bank: ₹2,434.13 crore

MTNL’s total financial debt, which includes loans from banks, sovereign-guaranteed bonds, and borrowings from the Department of Telecommunications (DoT), stands at ₹34,484 crore. This includes:

• ₹8,585 crore in bank loans
• ₹24,071 crore in sovereign-guaranteed bonds
• ₹1,828 crore borrowed from the DoT to service interest on those bonds