MTNL Defaults on Bank Principal & Interest Payments Totaling ₹9,575 Crore
MTNL reported defaults on principal and interest payments to banks totaling ₹9,575 crore as of July 31, 2026. Overdue principal stands at ₹7,794.34 crore and overdue interest at ₹1,780.27 crore. Total financial indebtedness is ₹37,396 crore.
A default on such a large scale impacts the company's creditworthiness, future borrowing capacity, and overall financial stability, which is a material event for investors.
The company has defaulted on significant principal and interest payments to multiple banks, indicating severe financial distress.
Mahanagar Telephone Nigam Limited (MTNL) has announced a default in the payment of principal installments and interest to several banks, as of July 31, 2026. This disclosure is made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
The total outstanding principal overdue amounts to ₹7,794.34 crore, with an additional ₹1,780.27 crore in overdue interest, bringing the total current default amount to ₹9,574.61 crore across multiple lenders including 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 on principal and interest payments began on various dates starting from August 12, 2024, for Union Bank of India, and the latest recorded default date for Indian Overseas Bank was February 03, 2025. The total principal amount of these bank obligations is ₹9,575 crore. MTNL's total financial indebtedness, including short-term and long-term debt, stands at ₹37,396 crore, which comprises bank loans of ₹9,575 crore, SG Bonds worth ₹24,071 crore, and a loan from the Department of Telecom (DoT) of ₹3,750 crore 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.