MTNL Defaults on Rs. 8,346 Crore Loans from PSU Banks

State-run telecom company Mahanagar Telephone Nigam Limited (MTNL) has defaulted on loans totaling Rs. 8,346.24 crore from seven public sector banks, according to a regulatory filing dated April 19. As of March 31, 2025, the firm’s total debt obligations stood at Rs. 33,568 crore. The loan defaults include Rs. 3,633.42 crore owed to Union Bank of India, Rs. 2,374.49 crore to Indian Overseas Bank, Rs. 1,077.34 crore to Bank of India, Rs. 464.26 crore to Punjab National Bank, Rs. 350.05 crore to State Bank of India, Rs. 266.30 crore to UCO Bank, and Rs. 180.3 crore covering principal and interest. The defaults occurred between August 2024 and February 2025. MTNL’s overall debt also includes Rs. 24,071 crore in sovereign guarantee bonds and Rs. 1,151 crore borrowed from the Department of Telecom for bond interest payments.