Key Highlights
- MTNL reported a default of ₹9,187.73 crore in principal and interest payments to seven public sector banks as of February 28, 2026.
- Union Bank of India accounts for the largest outstanding amount at ₹4,007.88 crore.
- Indian Overseas Bank exposure stands at ₹2,602.71 crore, the second largest among lenders.
- Total bank borrowing linked to the default is about ₹9,188 crore.
- MTNL’s total financial indebtedness has reached ₹36,216 crore including sovereign guaranteed bonds and loans from the Department of Telecommunications.
Mahanagar Telephone Nigam Limited (MTNL) has disclosed a default in the payment of principal instalments and interest to multiple public sector banks, with the total default amount reaching ₹9,187.73 crore as of February 28, 2026.
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing stock exchanges about the company’s financial obligations and the status of loan repayments.
According to the filing, the default relates to borrowings from seven public sector 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.
MTNL Breakdown of Bank Exposure
Among the lenders, Union Bank of India has the largest outstanding exposure to MTNL at ₹4,007.88 crore, including ₹3,334.57 crore in overdue principal and ₹673.31 crore in interest overdue.
Indian Overseas Bank follows with an outstanding amount of ₹2,602.71 crore, while Bank of India has an exposure of ₹1,205.23 crore.
Other banks with outstanding dues include:
- Punjab National Bank: ₹504.61 crore
- State Bank of India: ₹375.51 crore
- UCO Bank: ₹294.21 crore
- Punjab and Sind Bank: ₹197.58 crore
The company stated that several of these accounts had already been classified as Non-Performing Assets (NPAs) between August 2024 and February 2025, reflecting ongoing financial stress at the state-run telecom operator.
MTNL Total Borrowings and Financial Debt
MTNL reported that the total outstanding borrowings from banks and financial institutions stand at approximately ₹9,188 crore.
The company’s overall financial indebtedness has reached ₹36,216 crore, which includes:
- ₹9,188 crore in bank loans
- ₹24,071 crore in sovereign guaranteed bonds
- ₹2,957 crore loan from the Department of Telecommunications (DoT) used for servicing bond interest payments.
MTNL Continuing Financial Stress
The telecom company, which operates services primarily in Delhi and Mumbai, has been facing persistent financial challenges including declining subscriber base, high debt levels, and operational losses.
MTNL has previously reported multiple payment defaults to lenders over the past two years and continues to rely on government support measures and restructuring efforts to manage its liabilities.
The latest disclosure highlights the scale of MTNL’s debt burden and the ongoing financial strain faced by the state-owned telecom operator.