MTNL defaults on Rs 8,346 crore in bank loans; total indebtedness reaches Rs 33,568 crore

Mahanagar Telephone Nigam Limited (MTNL), the state-owned telecom operator, informed on Saturday that it has defaulted on loan repayments of over Rs 8,300 crore to multiple banks.

In an exchange filing, the company has revealed that it has failed to meet its financial obligations to a consortium of lenders, including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank.

The dates of the defaults vary, starting from August 12, 2024, with Union Bank of India, and extending up to February 3, 2025, with Indian Overseas Bank.


The company's total financial indebtedness stands at a staggering Rs 33,568 crore. This includes the Rs 8,346 crore owed to banks, Rs 24,071 crore in State Government (SG) Bonds, and Rs 1,151 crore due to the Department of Telecommunications (DoT) for payments related to SG Bond interest.

The repeated defaults indicate a severe liquidity crunch for the telecom operator. The company had previously notified the stock exchanges of similar defaults in a series of letters throughout the past months.