State-run telecom firm, Mahanagar Telephone Nigam Limited (MTNL) has defaulted on bank loans worth ₹8,585 crore from seven public sector banks, the company said in a regulatory filing on Tuesday (July 15).
The loss-making public sector telecom firm’s total debt obligations reached ₹34,484 crore as on June 30, 2025 comprising bank loan of ₹8,585 crore, sovereign guarantee bond ₹24,071 crore and loan for DoT for paying Sovereign Guarantee Bond interest ₹1,828 crore, according to the filing.
The total loan default includes ₹3,733.22 crore of debt raised from Union Bank of India, ₹2,434.13 crore of Indian Overseas Bank, ₹1,121.09 crore of Bank of India, ₹474.66 crore Punjab National Bank, ₹363.43 crore from State Bank of India, ₹273.58 crore from UCO Bank and ₹184.82 crore from Punjab & Sind Bank along with principal and interest payment.
The defaults in loan payment have occurred between August 2024 to February 2025.
The state-run firm had reported a default of ₹8,346.24 crore at the end of March 31, 2025 that occurred during the same period of August 2024 to February 2025.
India has recently approved a non-auction route for monetising assets of state-run entities like BSNL and MTNL, streamlining the process for properties valued below ₹10 crore. Under this framework, telecom PSUs will set prices for smaller assets, while the CPWD will handle valuations for those above ₹10 crore. For high-value assets exceeding ₹100 crore, oversight will fall to the National Land Monetisation Corporation (NLMC).
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