MTNL defaults on loan repayments of over Rs 8,300 crore

Mahanagar Telephone Nigam Limited (MTNL) said that it has defaulted on loan repayments of over Rs 8,300 crore to multiple banks. According to its stock exchange filing, the telecom firm failed to repay dues to several public sector banks, 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. MTNL defaulted on both principal and interest payments in March 2025.

These missed payments occurred in March and mark one of the largest defaults by a state-owned telecom firm in recent times. The company’s inability to service its debt has put further pressure on its financial standing.

MTNL’s financial health has been deteriorating for several years due to mounting debt, declining revenues, and intense market competition. The latest defaults reflect the broader challenges faced by legacy telecom firms in adapting to a rapidly evolving industry.

Despite previous government bailouts and merger talks with BSNL, the company continues to face operational and financial hurdles, with limited visibility of a sustainable turnaround in sight.

Shares of Mahanagar Telephone Nigam Ltd (MTNL) shares slumped 5.63 per cent in Monday's trade to hit a low of Rs 41.38. 

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