MTNL Defaults on ₹9,116 Crore Bank Loans; Total Debt Swells to ₹36,026 Crore

New Delhi, February 11, 2026: State-run telecom operator Mahanagar Telephone Nigam Limited (MTNL) has disclosed fresh defaults in repayment of bank loans, with total outstanding principal and interest dues to banks reaching ₹9,116 crore as of January 31, 2026.

In a regulatory filing to the BSE (Scrip Code: 500108) and NSE (Symbol: MTNL) under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, MTNL informed that it has defaulted on repayment of both principal instalments and interest to multiple public sector banks.

Banks Where Defaults Occurred

The defaults relate to loans from:

Union Bank of India
Bank of India
Punjab National Bank
State Bank of India
UCO Bank
Punjab & Sind Bank
Indian Overseas Bank

Most of these accounts had already been classified as Non-Performing Assets (NPAs) between August 2024 and February 2025.

Breakdown of Current Default (₹ in Crore)

Total Outstanding Principal: ₹7,794.34 crore
Total Interest Overdue: ₹1,321.31 crore
Additional Overdue Principal Component: ₹2,095.72 crore
Total Default Amount: ₹9,115.65 crore (approx. ₹9,116 crore)

Union Bank of India accounts for the largest exposure, followed by Indian Overseas Bank and Bank of India.

Mounting Debt Burden

MTNL’s overall financial indebtedness now stands at a staggering ₹36,026 crore, which includes:

Bank loans: ₹9,116 crore
Sovereign Guarantee (SG) Bonds: ₹24,071 crore
Loan from Department of Telecommunications (DoT) for servicing SG bond interest: ₹2,839 crore

Ongoing Financial Stress

The disclosure marks yet another instance in a series of monthly default intimations made by MTNL since mid-2024. The telecom PSU has been grappling with severe financial stress amid declining operations, mounting liabilities, and dependence on government support for debt servicing.

Market participants will closely monitor any further revival or restructuring measures from the government, given MTNL’s strategic importance and sovereign-backed bond obligations.

The filing was signed by Ratan Mani Sumit, Company Secretary, MTNL, and dated February 11, 2026.