Friday, October 10, 2025 | 03:38 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

MTNL loan defaults rise to ₹8,659 cr; total debt climbs to ₹34,577 cr

State-run telecom operator MTNL owes seven PSU banks; the bulk of its debt lies in sovereign-guaranteed bonds

MTNL loan defaults rise to ₹8,659 cr; total debt swells to ₹34,577 crore

MTNL’s loan defaults to PSU banks rose to ₹8,659 crore in July, while total debt climbed to ₹34,577 crore, mostly in sovereign-guaranteed bonds.

Vasudha Mukherjee New Delhi

Listen to This Article

State-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL) on Monday reported an increase in its loan defaults, with outstanding dues to public sector banks climbing to ₹8,659 crore as of July 31, 2025, the company said in a stock filing.
 
The telco said the amount comprises ₹7,794.34 crore in principal and ₹864.75 crore in interest.
 
The figure marks an increase from ₹8,584.93 crore of defaults reported on June 30, 2025, which included ₹7,794.34 crore of principal and ₹790.59 crore of interest.
 

Bank-wise defaults

According to the MTNL, the seven impacted public sector banks are:
  • Union Bank of India: ₹3,768.37 crore (₹3,334.57 crore principal; ₹433.80 crore interest)
  • Indian Overseas Bank: ₹2,455.01 crore (₹2,300 crore principal; ₹155.01 crore interest)
  • Bank of India: ₹1,131.54 crore (₹999.54 crore principal; ₹132 crore interest)
  • Punjab National Bank: ₹478.26 crore (₹432.16 crore principal; ₹46.10 crore interest)
  • State Bank of India: ₹363.43 crore (₹313.90 crore principal; ₹49.53 crore interest)
  • UCO Bank: ₹276.08 crore (₹245.83 crore principal; ₹30.25 crore interest)
  • Punjab & Sind Bank: ₹186.40 crore (₹168.34 crore principal; ₹18.06 crore interest)
 

MTNL total debt: ₹34,577 crore

MTNL also reported that its total financial debt stood at ₹34,577 crore at the end of July. This is slightly higher than the ₹34,484 crore reported at the end of June.
 
 
The debt comprises:
  • Bank loans: ₹8,659 crore
  • Sovereign-guaranteed bonds: ₹24,071 crore
  • Loan from Department of Telecommunications (for bond interest): ₹1,921 crore
 
The company has been filing monthly updates on its repayment status with stock exchanges, as required under Sebi’s disclosure norms.
 
The latest filing reflects an increase in unpaid interest.
 
At 11:50 am, shares of MTNL were trading at ₹43.14 apiece, up nearly 2 per cent on the BSE.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 18 2025 | 12:12 PM IST

Explore News