MTNL Share Price in Focus: Defaults on Principal And Interest Payments to Banks

Mahanagar Telephone Nigam Limited (MTNL), the state-owned telecom enterprise, has disclosed a default in repayment of principal and interest on loans totalling ₹8,806 crore to multiple public sector banks, according to its latest filing with the stock exchanges.

Default Details and Lenders

The company informed the BSE and NSE that the default includes dues to Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank.

The total overdue comprises ₹7,794.34 crore in principal and ₹1,011.99 crore in interest, as of September 30, 2025. MTNL’s total financial indebtedness stands at ₹34,938 crore, including ₹24,071 crore in sovereign guarantee bonds and a ₹2,061 crore loan from the Department of Telecommunications to pay bond interest.

Company Communication

In its regulatory filing, MTNL stated the company had defaulted on both principal and interest payments and listed the dates on which each bank account was classified as non-performing assets (NPA), starting from August 12, 2024 (Union Bank) to February 3, 2025 (Indian Overseas Bank).

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MTNL Share Performance 

As of October 23, 2025, 9:50 AM, MTNL share price is trading at ₹42.11 per share, reflecting a surge of 0.79% from the previous closing price.

Conclusion

The telecom PSU, which continues to face financial stress despite government support, remains under scrutiny as it works to address mounting debt obligations and operational challenges.

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