MTNL Defaults on ₹9,340 Crore Principal & Interest Payments to Banks
MTNL has defaulted on principal and interest payments totaling ₹9,339.68 crore to multiple banks as of April 30, 2026. The defaults involve Union Bank of India, Bank of India, PNB, SBI, UCO Bank, PSB, and IOB, with overdue principal at ₹7,794.34 crore and interest at ₹1,545.34 crore. Total bank borrowings are ₹9,340 crore, and overall financial indebtedness is ₹36,545 crore.
A default of this magnitude on bank loans and interest payments directly impacts the company's financial health, creditworthiness, and operational capabilities, leading to a high impact on stakeholders.
The company has reported a significant default in payment of principal and interest to multiple banks, indicating severe financial distress.
Mahanagar Telephone Nigam Limited (MTNL) has officially informed the stock exchanges about its default in the payment of principal installments and interest to several banks. This disclosure, made on May 18, 2026, pertains to defaults as of April 30, 2026.
The company has defaulted on payments to 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 defaults range from August 12, 2024, for Union Bank of India to February 3, 2025, for Indian Overseas Bank, with various banks declaring Non-Performing Assets (NPA) on different dates within this period.
The total overdue principal amount stands at ₹7,794.34 crore, with an additional ₹1,545.34 crore in overdue interest, bringing the total current default amount to ₹9,339.68 crore. This is part of MTNL's total outstanding borrowings from banks and financial institutions amounting to ₹9,340 crore. The company's total financial indebtedness, including short-term and long-term debt, is ₹36,545 crore, which comprises bank loans, SG bonds, and loans from the Department of Telecommunications (DoT).
What to do with a filing like this
Mahanagar Telephone Nigam Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. 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.