MTNL Defaults on ₹9,188 Crore Bank Loans; SEBI Disclosure Filed
New Delhi, March 16, 2026: State-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) has informed stock exchanges that it has defaulted on repayment of bank loans amounting to ₹9,188 crore, including principal and interest payments, as of February 28, 2026.
The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI circular dated November 21, 2019 regarding reporting of loan defaults.
Defaults Reported to Multiple Banks
According to the filing submitted to the BSE and the National Stock Exchange (NSE), MTNL has defaulted on repayments to several major public sector banks.
The lenders include:
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Union Bank of India
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Bank of India
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Punjab National Bank
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State Bank of India
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UCO Bank
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Punjab & Sind Bank
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Indian Overseas Bank
These defaults relate to overdue principal instalments and interest payments on loans extended to the telecom company.
Total Default Amount Crosses ₹9,000 Crore
As per the latest disclosure, the total outstanding bank loan default stands at ₹9,187.73 crore, which includes:
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Outstanding Principal: ₹7,794.34 crore
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Overdue Interest: ₹1,393.39 crore
Additionally, overdue principal instalments amount to ₹2,095.72 crore.
Bank-wise Default Details
The largest exposure is from Union Bank of India, followed by Indian Overseas Bank and Bank of India.
| Bank | Date of NPA | Outstanding Principal (₹ Cr) | Overdue Interest (₹ Cr) |
|---|---|---|---|
| Union Bank of India | 12 Aug 2024 | 3,334.57 | 673.31 |
| Bank of India | 4 Sept 2024 | 999.54 | 205.69 |
| Punjab National Bank | 9 Sept 2024 | 432.16 | 72.45 |
| State Bank of India | 28 Sept 2024 | 313.90 | 61.61 |
| UCO Bank | 28 Sept 2024 | 245.83 | 48.38 |
| Punjab & Sind Bank | 8 Oct 2024 | 168.34 | 29.24 |
| Indian Overseas Bank | 3 Feb 2025 | 2,300.00 | 302.71 |
MTNL’s Total Debt Position
MTNL also disclosed that its total financial indebtedness has reached ₹36,216 crore.
This includes:
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Bank loans: ₹9,188 crore
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Sovereign Guarantee (SG) Bonds: ₹24,071 crore
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Loan from Department of Telecommunications (DoT) for SG bond interest: ₹2,957 crore
Company Continues Regulatory Disclosure
MTNL has been regularly informing stock exchanges about its debt position and loan defaults since July 2024, as required under SEBI regulations.
The telecom PSU stated that the information is being provided to ensure transparency and regulatory compliance for investors and stakeholders.