MTNL's Financial Troubles Deepen

State-run telecom giant MTNL has officially announced its default on bank loans totaling Rs 8,585 crore, sourced from seven public sector banks. This revelation was made through a regulatory filing on Tuesday, highlighting the company's escalating financial woes.

The Scale of MTNL's Debt

As of June 30, 2025, MTNL's total debt obligations have soared to Rs 34,484 crore. This staggering amount includes a bank loan of Rs 8,585 crore, a sovereign guarantee bond worth Rs 24,071 crore, and a loan from the Department of Telecommunications (DoT) for paying Sovereign Guarantee Bond interest, amounting to Rs 1,828 crore.

Breakdown of Loan Defaults

The defaults span across several banks, with Union Bank of India at the forefront with Rs 3,733 crore, followed by Indian Overseas Bank (Rs 2,434 crore), Bank of India (Rs 1,121 crore), Punjab National Bank (Rs 474.7 crore), State Bank of India (Rs 363.4 crore), UCO Bank (Rs 273.6 crore), and Punjab & Sind Bank (Rs 184.8 crore). These figures include both principal and interest payments.

Timeline of Defaults

The loan payment defaults occurred between August 2024 and February 2025, marking a critical period in MTNL's financial downturn.