Mahanagar Telephone Nigam Limited (MTNL), the state-run telecom Public Sector Undertaking, has defaulted on bank loans amounting to Rs. 8,346.24 crore from six Public Sector Banks, with its total debt mounting to Rs. 33,568 crore as of March 31, 2025. The default was disclosed in a regulatory filing dated April 19, 2025, and spans across borrowings from multiple banks, reflecting the deepening financial crisis faced by the company.
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According to the disclosure, MTNL has failed to repay Rs. 3,633.42 crore borrowed from Union Bank of India, Rs. 2,374.49 crore from Indian Overseas Bank, Rs. 1,077.34 crore from Bank of India, Rs. 464.26 crore from Punjab National Bank, Rs. 350.05 crore from State Bank of India, and Rs. 266.30 crore from UCO Bank. Additionally, the company has defaulted on Rs. 180.3 crore, which includes both principal and interest payments. These defaults occurred during the period between August 2024 and February 2025.
The overall debt of MTNL comprises three main components. Besides the Rs. 8,346 crore outstanding bank loans, the company has raised Rs. 24,071 crore through Sovereign Guarantee bonds. Furthermore, it owes Rs. 1,151 crore to the Department of Telecommunications, which had extended the loan to help MTNL meet its SG bond interest payments.
With no significant revenue turnaround in sight and increasing liabilities, MTNL continues to reel under financial pressure. The government is yet to outline a clear revival strategy for the loss-making PSU, whose viability has remained a concern for several years.
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