MTNL's Loan Defaults Surge to ₹8,659 Crore, Total Debt Rises to ₹34,577 Crore

Mahanagar Telephone Nigam Ltd (MTNL) has reported a further increase in its outstanding loan defaults, with public disclosures revealing overdue payments to public sector banks rising to ₹8,659 crore as of July 31, 2025, as per exchange filings. 

The debt-laden, state-owned telecom company finds the bulk of its liabilities tied up in sovereign-guaranteed bonds, highlighting ongoing financial challenges within the sector.

Rising Defaults and Bank-Wise Exposure

According to MTNL’s latest filing with stock exchanges, its outstanding dues to 7 public sector banks comprise ₹7,794.34 crore in principal and ₹864.75 crore in unpaid interest, reflecting a rise from ₹8,584.93 crore reported in June. 

Among the impacted banks, Union Bank of India faces the largest exposure at ₹3,768.37 crore, split into ₹3,334.57 crore of principal and ₹433.80 crore interest. 

Indian Overseas Bank is owed ₹2,455.01 crore, which includes ₹2,300 crore as principal and ₹155.01 crore interest. 

Bank of India’s portion amounts to ₹1,131.54 crore (₹999.54 crore principal; ₹132 crore interest). 

Punjab National Bank’s exposure stands at ₹478.26 crore (₹432.16 crore principal; ₹46.10 crore interest); 

State Bank of India is due ₹363.43 crore (₹313.90 crore principal; ₹49.53 crore interest) 

UCO Bank reports ₹276.08 crore outstanding (₹245.83 crore principal; ₹30.25 crore interest) 

while Punjab & Sind Bank is carrying dues of ₹186.40 crore (₹168.34 crore principal; ₹18.06 crore interest).

Overall Debt Structure and Disclosures

MTNL’s total financial debt has grown to ₹34,577 crore by the end of July, exceeding the previous month’s tally of ₹34,484 crore. This comprises bank loans worth ₹8,659 crore, sovereign-guaranteed bonds standing at ₹24,071 crore, and a loan from the Department of Telecommunications of ₹1,921 crore used for bond interest servicing. 

The company has continued to file monthly repayment status updates in compliance with SEBI’s disclosure requirements, with the latest filing highlighting an increase in unpaid interest obligations and reflecting the telecom operator’s deepening debt burden.

Also Read: Government Plans Massive ₹47,000 Crore Capex to Strengthen BSNL Network!

MTNL Share Price Performance 

As of August 18, 2025, at 2:11 PM, MTNL share price is trading at ₹43.18 per share, reflecting a gain of 1.94% from the previous closing price. Over the past month, the stock has declined by 13.83%.

Conclusion

With unpaid dues edging higher and the pressure of significant sovereign-guaranteed bonds, MTNL’s latest update paints a clear picture of persistent financial stress. The regular disclosures and rising defaults underscore the challenging environment faced by the PSU telecom sector as it works to balance repayments and operational viability.

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