MTNL defaults on bank loans worth Rs 8,585 crore

New Delhi, Jul 15 (INB) Government-run telecom company MTNL has defaulted on bank loans amounting to Rs 8,585 crore comprising interest and penalty that it availed from seven public sector banks, the company informed stock exchanges on Tuesday The company’s total debt stood at Rs 34,484 crore as on June 30, 2025 which include bank loan worth Rs 8,585 crore, sovereign guarantee bond Rs 24,071 crore and loan for DoT for paying sovereign guarantee bond interest of Rs 1,828 crore. The total loan default includes Rs 3,733.22 crore of debt raised from Union Bank of India, Rs 2,434.13 crore of Indian Overseas Bank, Rs 1,121.09 crore of Bank of India, Rs 474.66 crore Punjab National Bank, Rs 363.43 crore from State Bank of India, Rs 273.58 crore from UCO Bank and Rs 184.82 crore from PSB along with principal and interest payment. The defaults in loan payment have occurred between August 2024 to February 2025. MTNL had reported a default of Rs Rs 8,346.24 crore at the end of March 31, 2025. The update shows that the company has not yet paid the previous due that defaulted between August to February.