NEW DELHI| August 19, 2025|SKY LINK TIMES
Mahanagar Telephone Nigam Ltd, the state-owned telecom operator, has defaulted on loan repayments totaling ₹8,659 crore (nearly $990 million) to a consortium of seven major public sector banks, according to an official regulatory filing on Monday.
This substantial default—comprising ₹7,794 crore in principal and ₹865 crore in overdue interest—marks the latest chapter in MTNL’s ongoing financial crisis, further straining the company’s already precarious position in India’s competitive telecom market.
Impacted Banks and Debt Breakdown
The seven public sector banks impacted by the default include:
- Union Bank of India: ₹3,768.37 crore
- Indian Overseas Bank: ₹2,455.01 crore
- Bank of India: ₹1,131.54 crore
- Punjab National Bank: ₹478.26 crore
- State Bank of India: ₹363.43 crore
- UCO Bank: ₹276.08 crore
- Punjab & Sind Bank: ₹186.40 crore
These defaults are part of MTNL’s total debt, which has ballooned to ₹34,577 crore as of July 31, 2025. The overall liabilities include sovereign-guaranteed bonds and loans from the Department of Telecommunications (DoT).
ALSO READ : SoftBank Invests $2 Billion in Intel
Financial Struggles and Government Support
MTNL has struggled for years with falling revenues, shrinking subscriber bases, and mounting losses. The company has remained operational mainly due to repeated government aid, including debt roll-overs and revival packages. Despite central government initiatives—such as financial packages totaling ₹3.22 lakh crore for both MTNL and its sister PSU BSNL—MTNL’s operational turnaround remains uncertain.
Industry Impact
The default is expected to intensify scrutiny on the financial management and sustainability of state-run telecom operators in India. While the Department of Telecommunications continues to recommend using BSNL and MTNL for government digital infrastructure citing data security, critics warn this could distort fair market competition and further strain the private sector.
Shares of MTNL fluctuated following the news, closing recently at ₹43.14 on the BSE, indicating volatile investor sentiment amid the mounting crisis.
FOR MORE STAY TUNE: https://skylinktimes.in/
