State-owned MTNL defaults on ₹8,346 crore bank loans from seven PSU banks

State-owned telecom service operator, Mahanagar Telephone Nigam Ltd (MTNL), on Saturday, April 19, disclosed that the company has defaulted on bank loans worth ₹8,346.24 crore from public sector lenders, according to the exchange filing. 

According to the BSE data, the company had taken loans from seven public sector banks, namely, the 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 disclosure also states that after the recent default of ₹8,346.24 crore, the total outstanding debt, which includes both the short-term borrowings and the long-term debt, was ₹33,568 crore. This is further divided into a bank loan, an SG Bond, and a loan from the Department of Telecom to pay the SG Bond interest. 

MTNL Dues

As per the filing data, MTNL has defaulted ₹3,633.42 crore to the Union Bank of India, ₹1,077.34 to the Bank of India, ₹464.26 crore to the Punjab National Bank, ₹350.05 crore to the State Bank of India, ₹266.39 crore to the UCO Bank, ₹180.30 crore to the Punjab and Sind Bank, and ₹2,374.49 crore to the Indian Overseas Bank.

The default payment numbers include the principal amount of the loan, along with the overdue interest amount, which has occurred between the time frame of August 2024 and February 2025.

The company also owes ₹24,071 crore in SG Bond debt, along with ₹1,151 crore in dues to the Department of Telecom, along with the ₹8,346 crore bank loan defaults.

MTNL Share Price

MTNL shares closed 0.16 per cent lower at ₹43.85 after Thursday's stock market session, compared to ₹43.92 at the previous market close. The Indian stock markets were closed on account of the Good Friday holiday.

MTNL shares have given stock market investors more than 500 per cent returns on their investment in the last five years and 21.60 per cent gains in the last one-year period.

However, on a year-to-date (YTD) basis, the stock is trading 14.65 per cent lower in 2025.

The shares hit their 52-week high levels at ₹101.88 on July 29, 2024, while the 52-week low level was at ₹32.70 on June 5, 2024, according to the BSE data.

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