MTNL Defaults on ₹8,806 Crore Principal & Interest Payments to Multiple Banks
MTNL has defaulted on ₹8,806.33 crore in principal and interest payments to seven banks, including SBI and PNB, as of September 30, 2025, indicating significant financial distress.
Defaults on such a large scale (₹8,806 crore) to numerous public sector banks signal severe financial instability for MTNL, potentially impacting its operations, creditworthiness, and future viability, thus warranting a high impact.
The company has disclosed significant defaults on principal and interest payments to multiple banks, which is a strong indicator of severe financial distress and negative performance.
Mahanagar Telephone Nigam Limited (MTNL) has disclosed defaults in the payment of principal and interest to several banks, as per an intimation dated October 22, 2025, for a disclosure made on September 30, 2025. This follows a series of previous intimations regarding defaults since July 2024. The total current default amount stands at ₹8,806.33 crore, comprising: * Outstanding Principal Overdue: ₹7,794.34 crore * Overdue Interest: ₹1,011.99 crore The defaulting banks and their respective Dates of NPA are: * Union Bank of India: August 12, 2024 * Bank of India: September 04, 2024 * Punjab National Bank: September 09, 2024 * State Bank of India: September 28, 2024 * UCO Bank: September 28, 2024 * Punjab and Sind Bank: October 08, 2024 * Indian Overseas Bank: February 03, 2025 The total amount of outstanding borrowings from banks/financial institutions is ₹8,806 crore. The company's total financial indebtedness, including short-term and long-term debt, is ₹34,938 crore, which includes bank loans of ₹8,806 crore, SG Bonds of ₹24,071 crore, and a loan from DoT for paying SG Bond interest of ₹2,061 crore.
What to do with a filing like this
Mahanagar Telephone Nigam Limited filed this with the NSE as a statutory disclosure, categorised under fraud/defaults disclosure. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Mahanagar Telephone Nigam Limited. Read the original for the full detail.