MTNL defaults on ₹9,036 crore bank dues; total debt rises to ₹35,851 crore

New Delhi, Jan 15, 2026:
State-owned telecom operator Mahanagar Telephone Nigam Ltd (MTNL) on Wednesday informed stock exchanges that it has defaulted on repayment of ₹9,036 crore towards principal and interest to multiple public sector banks, continuing its prolonged financial stress.

In a regulatory filing, MTNL said the defaults involve seven lenders — State Bank of India, Union Bank of India, Punjab National Bank, Bank of India, UCO Bank, Punjab & Sind Bank and Indian Overseas Bank. The payment lapses occurred between August 2024 and February 2025, following which the accounts were classified as non-performing assets.

According to the disclosure, the outstanding principal amount stands at ₹7,794.34 crore, while overdue interest totals ₹1,241.80 crore, taking the overall default to ₹9,036.14 crore.

Union Bank of India remains the largest lender with dues of ₹3,941 crore, followed by Indian Overseas Bank at ₹2,560 crore and Bank of India at ₹1,184 crore. Defaults to Punjab National Bank and State Bank of India stand at ₹497 crore and ₹369 crore, respectively.

MTNL’s total financial indebtedness has now climbed to ₹35,851 crore, including ₹9,036 crore in bank borrowings, ₹24,071 crore raised through sovereign-guaranteed bonds, and ₹2,744 crore borrowed from the Department of Telecommunications to service bond interest.

The company has been regularly reporting defaults since mid-2024, highlighting persistent liquidity pressure as its revenue base continues to weaken amid intense competition in the telecom sector.

Analysts say MTNL’s future will depend on the government’s long-term restructuring plan, including asset monetisation and potential debt support measures.