New Delhi: In a major financial setback for the state-run telecom sector, Mahanagar Telephone Nigam Limited (MTNL) has defaulted on bank loans worth ₹8,585 crore, the company disclosed in a regulatory filing on Tuesday.
The loans in default were sourced from seven public sector banks, including Union Bank of India, Indian Overseas Bank, and Bank of India. The defaults have occurred over a span of seven months – between August 2024 and February 2025.
Breakdown of Loan Defaults
According to MTNL’s disclosure, the total loan default of ₹8,585 crore includes-
- Union Bank of India – ₹3,733.22 crore
- Indian Overseas Bank – ₹2,434.13 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
These amounts include both principal and accrued interest that remain unpaid.
MTNL’s Total Debt Climbs to ₹34,484 Crore
MTNL’s total debt obligations have now ballooned to ₹34,484 crore as of June 30, 2025, which includes:
- ₹8,585 crore in bank loans
- ₹24,071 crore in sovereign guarantee bonds
- ₹1,828 crore loan from the Department of Telecommunications (DoT) to pay bond interest
Earlier, MTNL had reported a loan default of ₹8,346.24 crore as of March 31, 2025, pertaining to the same default period. The latest disclosure highlights continued stress and the absence of corrective measures over the past few months.
No Turnaround in Sight
The telecom firm has long been struggling to stay afloat amid rising competition, operational inefficiencies, and slow execution of revival plans. Despite several government bailout packages, MTNL remains a loss-making entity with little visible progress toward long-term financial stability.
About MTNL
MTNL, though once a key telecom provider in metro cities, has faced declining revenues and increased competition, and is currently operating in close coordination with BSNL as part of the government’s efforts to revive public sector telecom units.
About BSNL
BSNL, a central public sector undertaking under the Department of Telecommunications, Ministry of Communications, is playing a key role in India’s digital transformation. With its headquarters in New Delhi, BSNL is focusing on accelerated 4G expansion, fiber-optic upgrades, and new digital offerings like National WiFi Roaming, BiTV for mobile users, and IFTV for FTTH customers. BSNL was established on October 1, 2000 by the Government of India.
