MTNL Defaults on ₹8,659 Crore in Loans to Seven PSU Banks
State-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL) has once again failed to repay its loans—this time totalling ₹8,659 crore—to a consortium of seven public sector banks. The outstanding amount comprises ₹7,794.34 crore in principal and ₹864.75 crore in overdue interest, with defaults spanning from August 2024 to February 2025.
Debt Snapshot
| Bank | Exposure (₹ crore) |
|---|---|
| Union Bank of India | 3,768.37 |
| Indian Overseas Bank | 2,455.01 |
| Bank of India | 1,131.54 |
| Punjab National Bank | 478.26 |
| State Bank of India | 363.43 |
| UCO Bank | 276.08 |
| Punjab & Sind Bank | 186.40 |
Rising Debt Burden
MTNL’s total debt has continued to mount. As of July 31, 2025, the company’s overall obligations stood at ₹34,577 crore. This figure includes sovereign-guaranteed bonds and a loan from the Department of Telecommunications (DoT), which was used to pay bond interest.
Why It Matters
- Defaults highlight ongoing financial stress at the state-run telecom operator.
- Heavy dependence on sovereign-backed borrowings increases government exposure.
- PSU banks face mounting pressure from rising NPAs linked to legacy telecom debt.
Leave a Reply