MTNL Defaults on Rs 8,585 Crore Loans to Major Public Sector Banks

State-run Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on Rs 8,585 crore payments to seven major public sector banks, including State Bank of India and Punjab National Bank. The total debt obligations have reached Rs 34,484 crore. MTNL is selling non-core assets to generate revenue and mitigate financial distress.

Devdiscourse News Desk | Updated: 16-07-2025 13:21 IST | Created: 16-07-2025 13:21 IST

MTNL Defaults on Rs 8,585 Crore Loans to Major Public Sector Banks — Representative Image. Image Credit: ANI

Country:
India

State-owned Mahanagar Telephone Nigam Ltd (MTNL) is grappling with significant financial distress, having defaulted on loan payments amounting to Rs 8,585 crore. The telecom company acknowledged this shortfall in an exchange filing, revealing defaults affecting seven major public sector banks, among them Union Bank of India and State Bank of India.

The details from the filing show that Union Bank of India faces a default of Rs 3,733.22 crore, Bank of India Rs 1,121.09 crore, and Punjab National Bank Rs 474.66 crore. Additionally, MTNL owes Rs 273.58 crore to UCO Bank, Rs 184.82 crore to Punjab and Sind Bank, and a hefty Rs 2,434.13 crore to Indian Overseas Bank.

With its total debt obligations reaching Rs 34,484 crore by June 30, 2023, MTNL has resorted to selling non-core assets like land and buildings in a bid to recover and stabilize its financial standings. This comes amid the government's recent policy approval allowing the monetization of assets valued below Rs 10 crore via a non-auction route.

(With inputs from agencies.)