State-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on bank loans worth Rs 8,346.24 crore from seven public sector banks, the company disclosed in a regulatory filing dated April 19.
The loan defaults span from August 2024 to February 2025 and involve multiple lenders, including Rs 3,633.42 crore from Union Bank of India, Rs 2,374.49 crore from Indian Overseas Bank, Rs 1,077.34 crore from Bank of India, Rs 464.26 crore from Punjab National Bank, Rs 350.05 crore from State Bank of India, Rs 266.30 crore from UCO Bank, and Rs 80.30 crore in principal and interest payments.
MTNL’s total debt burden has climbed to Rs 33,568 crore as of March 31, 2025. This includes Rs 8,346 crore in bank loans, Rs 24,071 crore in sovereign guarantee (SG) bonds, and Rs 1,151 crore borrowed from the Department of Telecommunications (DoT) to service interest payments on SG bonds.
The financially stressed telecom firm, which has long been operating at a loss, continues to grapple with rising liabilities despite multiple government-led revival efforts.