- Mahanagar Telephone Nigam Ltd defaulted on Rs 8,584.9 crore to seven public sector banks by June 2025
- Union Bank faced the largest default amount of Rs 3,733.2 crore from MTNL
- MTNL’s total financial debt is Rs 34,484 crore, including bank loans and sovereign bonds
Mahanagar Telephone Nigam Ltd. disclosed on Monday a significant default of Rs 8,584.9 crore in principal and interest payments to seven public sector banks as of June 2025, according to an exchange filing.
The affected lenders include Union Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Indian Overseas Bank, Punjab & Sind Bank, and Bank of India.
The largest defaulted amount was towards Union Bank at Rs 3,733.2 crore, followed by IOB at Rs 2,434.1 crore. MTNL also owed Rs 1,121.1 crore to BOI. The default to PNB stood at Rs 474.7 crore, while dues to SBI amounted to Rs 363.4 crore. The company also defaulted on Rs 273.6 crore to UCO Bank and Rs 184.8 crore to Punjab & Sind Bank.
The overdue principal across these loans amounted to Rs 1,868.6 crore.
MTNL's total financial indebtedness, comprising both short- and long-term borrowings, now stands at Rs 34,484 crore. This includes Rs 8,585 crore in bank loans, Rs 24,071 crore in sovereign guarantee bonds and Rs 1,828 crore in loans from the Department of Telecommunications to service SG bond interest obligations.
Earlier this month, the government moved to simplify the process of selling MTNL's assets to central and state government entities, people familiar with the development told NDTV Profit. The auction route has been scrapped in favour of offering assets at straightforward valuations to accelerate monetisation efforts.
This shift aims to bypass the protracted bidding and valuation exercises that have previously delayed the process. Asset sales will take place in phases, with the proceeds earmarked for repaying MTNL's ballooning debt burden.
MTNL's deteriorating financial health has had wider repercussions, affecting timely payments to vendors, salaries for employees and dues to pensioners. The company's shares remain volatile, often influenced more by speculation around potential mergers or government bailouts than by core operational performance.
As the debt overhang grows and operational viability remains uncertain, MTNL's future continues to hinge heavily on swift asset sales and government support.
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