Mahanagar Telephone Nigam Ltd (MTNL) has disclosed defaults on principal and interest payments totaling approximately ₹8,585 crore. This information was provided in an exchange filing on July 15, 2025, detailing the company's financial position as of June 25, 2025. The defaults involve seven public sector banks.
The 7 state-owned banks impacted by MTNL's payment defaults are 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 company formally informed stock exchanges of these non-payments.
According to the filing, the largest defaulted amount is ₹3,733.22 crore owed to Union Bank of India, ₹2,434.13 crore to Indian Overseas Bank, ₹1,121.09 crore to the Bank of India, ₹474.66 crore to Punjab National Bank, and ₹363.43 crore to the State Bank of India. Smaller amounts include ₹273.58 crore to UCO Bank and ₹184.82 crore to Punjab and Sind Bank. The overdue principal across all 7 banks totals ₹1,868.61 crore.
MTNL's aggregate financial indebtedness, encompassing both short-term and long-term liabilities, stands at ₹34,484 crore. This figure includes ₹8,585 crore in bank loans, ₹24,071 crore from sovereign guarantee bonds, and ₹1,828 crore in loans from the Department of Telecommunications for sovereign guarantee bond interest. The earliest default was noted in August 2024 with Union Bank of India, with subsequent non-performing assets appearing through February 2025.
The company's financial state has led to delays in payments to vendors, employee salaries, and pensioner dues. In response, the government has initiated measures to simplify the sale of MTNL's assets. This involves offering assets at valuations to central and state government entities, replacing the previous auction route to expedite debt repayment.
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As of 9:52 AM on July 16, 2025, MTNL share price was trading at ₹49.58, a 0.68% decrease.
MTNL's disclosure of significant payment defaults to public sector banks highlights its financial challenges. The company's substantial overall indebtedness continues to be a concern. Efforts are underway to address these liabilities through asset monetisation.
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Published on: Jul 16, 2025, 9:54 AM IST
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