MTNL Reports Default on Principal and Interest Payments to Multiple Banks
Mahanagar Telephone Nigam Ltd (MTNL) has reported defaults concerning the payment of principal installments and interest across several major banks. The company noted that the default was declared as of March 31, 2026.MTNL’s outstanding borrowings from banks and financial institutions totaled Rs 9,263 Crore. When factoring in short-term and long-term debt, the company's total financial indebtedness stood at Rs 36,314 Crore. This total debt includes bank loans of Rs 9,263 Crore, a State Guarantee (SG) bond of Rs 24,071 Crore, and SG bond interest of Rs 2,980 Crore.
The default affects accounts with seven financial institutions, 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.
Outstanding Borrowings and Total Indebtedness
The following table summarizes the key financial obligations:| Financial Metric | Amount (INR Crore) |
|---|---|
| Total Outstanding Borrowings from Banks/Financial Institutions | Rs 9,263 |
| Total Financial Indebtedness (Including ST/LT debt) | Rs 36,314 |
Details of Loan Defaults
The company provided a detailed breakdown of the arrears, showing the amount of Principal and Interest overdue for each bank as of the date of default.| Bank | Date of NPA | Overdue Principal (Rs Crore) | Overdue Interest (Rs Crore) |
|---|---|---|---|
| Union Bank of India (UBI) | 12-08-2024 | 3,334.57 | 784.57 |
| Bank of India (BOI) | 04-09-2024 | 999.54 | 400.92 |
| Punjab National Bank (PNB) | 09-09-2024 | 432.16 | 232.16 |
| State Bank of India (SBI) | 28-09-2024 | 313.90 | 313.90 |
| UCO Bank | 28-09-2024 | 245.83 | 245.83 |
| Punjab and Sind Bank (PSB) | 08-10-2024 | 168.34 | 168.34 |
| Indian Overseas Bank (IOB) | 03-02-2025 | 2,300.00 | N/A |
The consolidated default amounts registered across these lenders are detailed as follows:
| Component | Total Amount (Rs Crore) |
|---|---|
| Total Overdue Principal | 7,794.34 |
| Total Overdue Interest | 2,145.72 |
| Total Default Amount | 9,262.53 |
MTNL Stock Price Movement
Mahanagar Telephone Nigam Limited is rallying to ₹33.87 as of 11:24 AM, gaining 1.62% in live trading. The stock sees strong interest, with over 2.19 million shares trading in volume.Source:
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