MTNL's Bank Loan Default Rises to ₹9,419 Crore; Total Debt Nears ₹37,000 Crore

New Delhi, June 16: State-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL) has reported a cumulative default of ₹9,419 crore on principal and interest payments to seven public sector banks, according to a regulatory filing submitted to stock exchanges.

The disclosure, made under SEBI's Listing Obligations and Disclosure Requirements (LODR), pertains to defaults outstanding as of May 31, 2026.

Union Bank, SBI, PNB Among Major Lenders

MTNL said the defaults relate to borrowings from Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank.

Among these lenders, Union Bank of India has the highest exposure, with outstanding dues exceeding ₹4,111 crore. Indian Overseas Bank follows with outstanding borrowings of around ₹2,669 crore.

The total overdue amount comprises ₹7,794.34 crore of principal dues and ₹1,624.58 crore of interest liabilities.

Total Debt Touches Nearly ₹37,000 Crore

According to the filing, MTNL's overall financial indebtedness stood at ₹36,966 crore as of May 31, 2026.

This includes:

• Bank loans of ₹9,419 crore;

• Sovereign Guarantee Bonds worth ₹24,071 crore; and

• Loans amounting to ₹3,476 crore received from the Department of Telecommunications (DoT) for servicing interest obligations on sovereign-guaranteed bonds.

Continuing Financial Stress

The latest disclosure is part of a series of periodic updates issued by MTNL since 2024 regarding loan repayment defaults. Several of the company's loan accounts had turned non-performing assets (NPAs) between August 2024 and February 2025.

MTNL, a Government of India enterprise, has been grappling with mounting debt and declining operations for several years. The company continues to provide telecom services in Delhi and Mumbai while implementing various revival measures supported by the government.