MTNL defaults again on bank loan payments, total indebtedness at ₹34,842 crore

Mahanagar Telephone Nigam Limited (MTNL) reported defaults on principal and interest payments to several banks, as detailed in its disclosure dated September 11, 2025. This follows previous notifications, with the latest disclosure indicating ongoing payment issues.

The current default amount totals ₹8,733.68 crore, comprising ₹7,794.34 crore in principal and ₹939.34 crore in interest. Overdue principal stands at ₹1,910.66 crore. Banks affected 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), with the earliest non-performing asset (NPA) date being August 12, 2024, for UBI.

MTNL’s total financial indebtedness stands at ₹34,842 crore. This figure includes ₹8,734 crore in bank loans, ₹24,071 crore in SG bonds, and ₹2,037 crore in loans from the Department of Telecommunications for paying SG bond interest. The company explicitly states the nature of the obligation as "principal and interest payment."