MTNL Defaults on Principal & Interest Payments to Banks as of Feb 28, 2026
MTNL defaulted on principal and interest payments to multiple banks as of February 28, 2026. Total overdue principal is ₹7,794.34 crore and overdue interest is ₹1,393.39 crore, totaling ₹9,187.73 crore in current defaults. Total financial indebtedness stands at ₹36,216 crore.
Default in debt obligations can severely impact the company's financial health, credit rating, and future borrowing capacity, affecting its operations and investor confidence.
The company has reported defaults in principal and interest payments to banks, indicating significant financial distress.
Mahanagar Telephone Nigam Limited (MTNL) has informed the stock exchanges about its default in the payment of principal (instalment) and interest to several banks as of February 28, 2026. This disclosure is made in compliance with Regulation 30 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 defaults in principal and interest payments started occurring from August 12, 2024, with the latest being for Indian Overseas Bank on February 3, 2025, for the NPA date.
The total overdue principal amount across all these banks stands at ₹7,794.34 crore, with an additional overdue interest of ₹1,393.39 crore. The total current default amount is ₹9,187.73 crore. The total principal amount of the obligation is ₹9,188 crore.
MTNL's total outstanding borrowings from banks and financial institutions amount to ₹9,188 crore. The company's total financial indebtedness, including short-term and long-term debt, is ₹36,216 crore. This includes bank loans of ₹9,188 crore, SG bonds of ₹24,071 crore, and a loan from the Department of Telecommunications (DoT) for paying SG Bond interest amounting to ₹2,957 crore.
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.