MTNL Reports ₹9,188 Crore Loan Default to SBI, PNB, Union Bank and Other Lenders

Mahanagar Telephone Nigam Limited (MTNL) has informed stock exchanges about a default in servicing certain bank borrowings. In a regulatory disclosure, the company reported that it has been unable to meet scheduled payments of principal instalments and interest to multiple lenders. 

The update has been made in accordance with the SEBI Listing Obligations and Disclosure Requirements regulations and provides details of the outstanding dues and financial obligations.

Regulatory Disclosure by MTNL

MTNL issued a disclosure to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing relates to an update on the company’s default in servicing certain bank borrowings.

The disclosure was made on February 28, 2026, and includes information on outstanding principal and overdue interest payments to several lending institutions.

Banks Affected by the Payment Default

The company stated that the payment default involves multiple public sector banks. The lenders mentioned in the disclosure include:

• Union Bank of India
• Bank of India
• Punjab National Bank
• State Bank of India
• UCO Bank
• Punjab and Sind Bank
• Indian Overseas Bank

These institutions have extended credit facilities to the company as part of its borrowing arrangements.

Details of the Outstanding Amount

According to the disclosure, the total default amount related to bank borrowings stands at approximately ₹9,187.73 crore.

This includes:

• Outstanding principal: ₹7,794.34 crore
• Overdue interest: ₹1,393.39 crore

The data also indicates overdue principal components in certain accounts where repayment obligations have not been met as per schedule.

Timeline of Loan Accounts Turning NPA

The filing also provides the timeline when the loan accounts with the respective banks were classified as non-performing assets (NPAs). These dates range from August 2024 to February 2025, depending on the lender.

Union Bank of India was among the earliest lenders to classify the account as NPA in August 2024, while the loan from Indian Overseas Bank was reported to have turned NPA in February 2025.

Overall Financial Obligations

MTNL stated that its total outstanding borrowing from banks and financial institutions amounts to approximately ₹9,188 crore.

In addition to bank loans, the company’s overall financial indebtedness includes:

• Sovereign Guaranteed bonds worth ₹24,071 crore
• Loans from the Department of Telecommunications amounting to ₹2,957 crore, taken to service interest payments on those bonds

Including these obligations, the company’s total financial debt stands at approximately ₹36,216 crore, covering both short-term and long-term liabilities.

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Conclusion

The disclosure provides an update on MTNL’s outstanding loan obligations and the status of repayments to several banks. Such filings are part of the regulatory requirements for listed companies to inform investors and market participants about material financial developments and liabilities.

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