MTNL Defaults on ₹9,419 Crore Bank Loans and Interest Payments as of May 31, 2026
MTNL defaulted on ₹9,419 crore in principal and interest payments to multiple banks as of May 31, 2026. The total financial indebtedness stands at ₹36,966 crore, including bank loans, SG bonds, and a loan from DoT.
Defaulting on bank loans and having substantial overall financial indebtedness can significantly impact the company's credit rating, future borrowing capacity, and operational stability.
The company has defaulted on significant principal and interest payments to multiple banks, indicating severe financial distress.
Mahanagar Telephone Nigam Limited (MTNL) has formally informed the stock exchanges about its default in the payment of principal installments and interest to several banks. This disclosure, made on June 16, 2026, follows a series of previous intimations regarding financial obligations.
The company reported that as of May 31, 2026, it defaulted on principal and interest 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 total outstanding principal amount overdue across these banks amounts to ₹7,794.34 crore, with an additional ₹1,624.58 crore in overdue interest, bringing the total current default amount to ₹9,418.92 crore. The default dates range from August 12, 2024, for Union Bank of India to February 3, 2025, for Indian Overseas Bank.
MTNL's total outstanding borrowings from banks and financial institutions stand at ₹9,419 crore. The company's total financial indebtedness, including short-term and long-term debt, aggregates to ₹36,966 crore. This includes ₹9,419 crore in bank loans, ₹24,071 crore in Sovereign Guarantee (SG) Bonds, and ₹3,476 crore as a loan from the Department of Telecommunications (DoT) for paying SG Bond interest.
What to do with a filing like this
Mahanagar Telephone Nigam Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. 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.