MTNL (Mahanagar Telephone Nigam Limited), the state run telecom company has failed to repay loans to multiple banks. These loan defaults happened between August 12, 2024 to February 3, 2025. The defaulted amount is more than ₹8,300 crore. This information was disclosed by MTNL in a stock exchange filing on Saturday.
MTNL took loans from seven banks and here’s the list how much MTNL owes to each bank:
Union Bank of India – ₹3,633.42 crore
Indian Overseas Bank – ₹2,374.49 crore
Bank of India – ₹1,077.34 crore
Punjab National Bank – ₹464.26 crore
State Bank of India – ₹350.05 crore
UCO Bank – ₹266.30 crore
Punjab & Sind Bank: ₹180.30 crore (this includes both the original loan and the interest)
As of March 31, 2025 total debt of MTNL is ₹33,568 crore. It owes a lot of money to different parties. Here’s the breakdown of the amount:
– MTNL borrowed ₹8,346 crore from multiple banks.
– Debt of ₹24,071 crore from Sovereign Guarantee (SG) Bonds which was issued by MTNL and bought by the state government to help raise funds. MTNL now has to repay this amount.
– To pay interest on those Sovereign Guarantee (SG) Bonds, MTNL took another loan from the Department of Telecommunications (DOT). Now, MTNL owes ₹1,151 crore in interest on that loan it took from DoT.
This information shows that MTNL is facing serious financial problems and don’t have enough money to meet its obligation. MTNL borrowed money to pay off the interest on an earlier loan, and now even the second loan’s interest is piling up.
