MTNL Defaults on Bank Loan Principal & Interest Payments Totaling ₹9,654 Crore
MTNL has defaulted on principal and interest payments to multiple banks, totaling ₹9,654.25 crore as of August 31, 2026. Overdue principal stands at ₹7,794.34 crore and overdue interest at ₹1,859.91 crore. Total company debt is ₹37,475 crore.
A default of this magnitude on bank loans and the overall high level of financial indebtedness can severely impact the company's credit rating, future borrowing capacity, operational stability, and investor confidence.
The announcement details significant defaults in principal and interest payments to multiple banks, indicating severe financial distress for the company.
Mahanagar Telephone Nigam Limited (MTNL) has announced a default in the payment of principal (instalment) and interest to several banks, as of August 31, 2026. This disclosure is made in compliance with Regulation 30 and 51 of SEBI (LODR) Regulations, 2015.
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 dates of Non-Performing Assets (NPA) for these banks range from August 12, 2024, to February 3, 2025.
The total outstanding principal overdue amounts to ₹7,794.34 crore, with an additional ₹1,859.91 crore in overdue interest, bringing the total current default amount to ₹9,654.25 crore. The total principal amount of these obligations is ₹9,654 crore.
MTNL's total outstanding borrowings from banks and financial institutions amount to ₹9,654 crore. The company's total financial indebtedness, including short-term and long-term debt, stands at ₹37,475 crore. This includes ₹9,654 crore in bank loans, ₹24,071 crore in SG Bonds, and a ₹3,750 crore 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 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.