MTNL Defaults on Rs 8,659 Crore Loans; Debt Load Touches Rs 34,577 Crore
Mahanagar Telephone Nigam Limited (MTNL) has defaulted on loans worth 8,659 crore, including principal and interest, across seven PSU banks. Its total debt has now climbed to 34,577 crore as financial pressures mount.
Mahanagar Telephone Nigam Limited (MTNL), the state-owned telecom operator, has reported a rise in loan defaults. Dues to public sector banks increased to Rs 8,659 crore by July 31, 2025.
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What’s included in the default?
Principal amount: Rs 7,794.34 crore
Interest: Rs 864.75 crore
This amount is higher than the Rs 8,584.93 crore default reported on June 30, 2025. At that time, interest dues were Rs 790.59 crore.
Banks hit by MTNL defaults
The company’s missed repayments affect seven public sector banks:
Union Bank of India: Rs 3,768.37 crore
Indian Overseas Bank: Rs 2,455.01 crore
Bank of India: Rs 1,131.54 crore
Punjab National Bank: Rs 478.26 crore
State Bank of India: Rs 363.43 crore
UCO Bank: Rs 276.08 crore
Punjab and Sind Bank: Rs 186.40 crore
Rising overall debt
MTNL’s total debt has now reached Rs 34,577 crore at the end of July 2025. This shows a slight increase from Rs 34,484 crore reported in June.
The company continues to face financial struggles, high operational costs, and declining revenues, making debt repayment an increasing worry.
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