MTNL's Massive Loan Default: A Financial Quagmire

State-run telecom company, MTNL, defaulted on Rs 8,585 crore of bank loans from seven public banks. With total debt reaching Rs 34,484 crore by June 2025, the defaults spanned from August 2024 to February 2025. Key lenders include Union Bank and Indian Overseas Bank.

State-run telecom firm MTNL has defaulted on massive bank loans totaling Rs 8,585 crore from seven public sector banks, according to its recent regulatory filing.

The struggling telecom company's overall debt obligations reached a staggering Rs 34,484 crore as of June 30, 2025. This includes a bank loan of Rs 8,585 crore, a sovereign guarantee bond of Rs 24,071 crore, and a loan for the Department of Telecommunications to pay interest on the Sovereign Guarantee Bond amounting to Rs 1,828 crore.

Among the defaulters, Union Bank of India topped the list with Rs 3,733.22 crore, followed by Indian Overseas Bank with Rs 2,434.13 crore. The defaults occurred from August 2024 to February 2025.

(With inputs from agencies.)