Telecom operator Mahanagar Telephone Nigam Ltd (MTNL) on Tuesday informed the stock exchanges that it has defaulted on payments of both principal and interest to a group of public sector banks. The total overdue amount stands at nearly ₹8,585 crore.
After the announcement, MTNL shares fell 4.80% to ₹49.59, down ₹2.50 on the day.
The disclosure lists Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank as the lenders involved.
MTNL said the defaults span from August 2024 to February 2025. According to the breakdown, the company owes ₹7,794.34 crore in overdue principal and ₹790.59 crore in unpaid interest.
Here’s a snapshot of the outstanding dues:
- Union Bank of India: ₹3,733.22 crore
- Bank of India: ₹1,121.09 crore
- Punjab National Bank: ₹474.66 crore
- State Bank of India: ₹363.43 crore
- UCO Bank: ₹273.58 crore
- Punjab & Sind Bank: ₹184.82 crore
- Indian Overseas Bank: ₹2,434.13 crore
MTNL’s total financial debt, which includes loans from banks, sovereign-guaranteed bonds, and borrowings from the Department of Telecommunications (DoT), stands at ₹34,484 crore. This includes:
- ₹8,585 crore in bank loans
- ₹24,071 crore in sovereign-guaranteed bonds
- ₹1,828 crore borrowed from the DoT to service interest on those bonds
