Mahanagar Telephone Nigam defaults on bank loan payments

MTNL has reported defaults on loan obligations to multiple banks, as of October 22, 2025. The company confirmed these defaults pursuant to SEBI (LODR) Regulations, 2015, and a SEBI circular dated November 21, 2019. The banks involved include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.

The total outstanding borrowings from banks and financial institutions for MTNL stand at INR 8806 Crore. The total financial indebtedness of the listed company, including short-term and long-term debt, is INR 34938 Crore. This figure includes bank loans of INR 8806 Crore, SG Bonds of INR 24071 Crore, and a loan for DoT to pay SG Bond interest of INR 2061 Crore.

The cumulative overdue amount for principal and interest payments totals INR 1,011.99 Crore in interest and INR 2,045.72 Crore in principal, with the earliest default date being August 12, 2024.