MTNL Share Price in Focus as it Defaults on Bank Loans and Interest Payments

Mahanagar Telephone Nigam Limited (MTNL), a government-owned enterprise, has defaulted on loan and interest payments amounting to ₹9,036 crore. This financial strain affects several major Indian banks, highlighting MTNL's ongoing financial challenges. 

Details of MTNL's Financial Obligations 

MTNL has defaulted on principal and interest payments to several banks, including 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 outstanding amount is ₹9,036 crore, with a breakdown of ₹7,794.34 crore in overdue principal and ₹1,241.80 crore in overdue interest. 

The dates of default vary, with Union Bank of India marking the earliest default on August 12, 2024, and Indian Overseas Bank the latest on February 3, 2025. The financial strain is evident as MTNL struggles to meet its obligations. 

Impact on Major Indian Banks 

The default has significant implications for the banks involved. Union Bank of India has the highest outstanding principal of ₹3,334.57 crore, followed by Indian Overseas Bank with ₹2,300 crore. Other banks, such as Bank of India and Punjab National Bank, also face substantial overdue amounts. 

Read More: TRAI Seeks More Penal Powers to Impose Higher Fines on Telecom Operators! 

MTNL's Total Financial Indebtedness 

MTNL's total financial indebtedness stands at ₹35,851 crore. This includes ₹9,036 crore in bank loans, ₹24,071 crore in SG bonds, and ₹2,744 crore in loans from the Department of Telecommunications for paying SG bond interest. The company's financial burden is substantial, reflecting its ongoing challenges in managing debt obligations. 

Mahanagar Telephone Nigam Share Price Performance 

As of January 16, 2026, at 9:25 AM, Mahanagar Telephone Nigam share price on NSE was trading at ₹33.67 down by 0.06% from the previous closing price.  

Conclusion 

MTNL's default on ₹9,036 crore in loans and interest payments underscores its financial difficulties. The impact on major Indian banks is significant, with substantial overdue amounts affecting their financial health. MTNL's total indebtedness of ₹35,851 crore highlights the scale of its financial challenges. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.