MTNL reports fresh loan default of Rs 8,881 crore to multiple banks

New Delhi: Mahanagar Telephone Nigam Limited (MTNL), the state-owned telecommunications company, has reported fresh defaults on principal and interest payments to a consortium of lenders, according to a regulatory filing submitted on October 31. The disclosure was made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) and the SEBI circular on reporting defaults.

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In its filing to the BSE and NSE, MTNL stated that it has continued to default on repayments to seven public-sector banks: 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 dates on which these loans were classified as non-performing assets (NPAs) by the respective lenders range from August 12, 2024, to February 3, 2025.

The company reported a current default amount totalling Rs 8,881.48 crore, comprising Rs 7,794.34 crore in overdue principal and Rs 1,087.14 crore in overdue interest. Among the lenders, Union Bank of India has the highest outstanding exposure of Rs 3,872.52 crore, followed by Indian Overseas Bank with Rs 2,518.05 crore.

MTNL also disclosed that its total financial indebtedness stands at Rs 35,167 crore, which includes bank loans of Rs 8,881 crore, sovereign guarantee (SG) bonds amounting to Rs 24,071 crore, and an additional Rs 2,215 crore borrowed from the Department of Telecommunications to service SG bond interest obligations.

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