State-owned Indian operator Mahanagar Telephone Nigam Limited (MTNL) has reportedly defaulted on loan repayments of over INR83 billion about (US$971.5 million) to multiple banks.
Citing a recent stock exchange filing, local news services report that the operator failed to repay dues to several public sector banks, 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. The default is on both principal and interest payments in March 2025.
Union Bank of India is the largest creditor. MTNL owes it over INR36 billion (more than US$425 million). Indian Overseas Bank is owed about US$278 million. Bank of India is owed some US$119 million.
MTNL's accounts with these banks were classified as non-performing assets as early as August and September 2024, with the most recent default reported in February 2025 for Indian Overseas Bank.
However, including short and long-term liabilities – bank loans, Sovereign Guarantee (SG) Bonds, and a loan from the Department of Telecommunications – the total financial indebtedness of the company is said to be close to INR335.7 billion – a mind-boggling US$3.9 billion.
This is despite the monetisation of land and building assets since 2019, sales that boosted the MTNL share price in March. It’s also worth noting that in the same month the government said it had no plans to privatise either MTNL or the much bigger BSNL, which has been managing the operation of MTNL in its core markets of Delhi and Mumbai.
It’s hard to know where this leaves MTNL, but the Indian Financial Express says, with eloquent understatement: “The financially stressed telecom firm, which has long been operating at a loss, continues to grapple with rising liabilities despite multiple government-led revival efforts.”
