MTNL’s Financial Woes Mount as It Discloses ₹8,585 Cr Defaults on Payment to Lenders

Government-run telecom operator Mahanagar Telephone Nigam (MTNL) has defaulted on payments of both principal and interest to a group of public sector banks, including the State Bank of India and Bank of India. In an exchange filing on July 15, the government-run operator said the total defaulted amount stands at nearly ₹ 8,585 crore, out of which ₹ 7,794.34 crore is the principal, and ₹ 790.59 crore is the interest amount. 

“Total amount outstanding as on date 30/06/2025 is ₹ 8585 crore,” said MTNL on exchanges.

How Much MTNL Owes to Banks?

The telecom company said the default amount is from the period between August 2024 and February 2025. According to the disclosure, the list of lenders includes the Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank.the default amount is from the period between August 2024 and February 2025. According to the disclosure, the list of lenders includes the Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank. The total due owed to Union Bank of India, Bank of India and Punjab National Bank stood at ₹3,733.22 crore, ₹1,121.09 crore and ₹474.66 crore, respectively. To others, like State Bank of India, UCO Bank, Punjab & Sind Bank and Indian Overseas Bank, the government-run operator owed ₹363.43 crore, ₹273.58 crore, ₹184.82 crore and ₹2,434.13 crore, respectively. 

Apart from this, MTNL’s total financial liability is around Rs 34,484 crore, which includes loans from banks, sovereign-guaranteed bonds, and borrowings from the Department of Telecommunications (DoT). 

While default on payments has mounted financial woes for the government-run telecom company, the Prime Minister Narendra Modi-led government has placed its bet to revive the company. Since 2019, the government has infused funds worth ₹3.22 lakh crore in BSNL and MTNL. Besides this, the government has ₹1,000 crore fundraise plan in pipeline in the financial year 2026 to infuse liquidity and reduce the debt of the two state-run telecom firms. 

“BSNL has two or three parcels under consideration. The total land value from both BSNL and MTNL is approximately ₹1,000 crore, which is likely to be monetised this year,” MoneyControl had earlier reported, citing an official source.