MTNL Share Price Sinks 7% After Defaulting on ₹8,277 Crore Loan Across 7 Banks

Mahanagar Telephone Nigam Limited (MTNL), a Government of India enterprise, has defaulted on principal and interest payments to multiple banks, as per its latest disclosure under SEBI regulations.

MTNL’s Debt Crisis – A Closer Look

According to MTNL’s latest filing with stock exchanges, the company has defaulted on both principal and interest payments to major public sector banks. The outstanding loan amount of ₹8,277 crore includes defaults across:

1. Union Bank of India (UBI)
2. Bank of India (BOI)
3. Punjab National Bank (PNB)
4. State Bank of India (SBI)
5. UCO Bank
6. Punjab & Sind Bank (PSB)
7. Indian Overseas Bank (IOB)

Rising Debt and Mounting Defaults

The defaults occurred between August 2024 and February 2025, with overdue interest payments totaling ₹1,450.36 crore and overdue principal standing at ₹482.97 crore.

In addition to its bank borrowings, MTNL has a total financial indebtedness of ₹33,497 crore, which includes a sovereign guarantee bond of ₹24,071 crore and a ₹1,149 crore loan from the Department of Telecommunications (DoT).

Share Price Performance

MTNL’s share price took a sharp hit, plunging 7.26% to ₹45.33, following concerns over its financial health after defaulting on a ₹8,277 crore loan across 7 banks. The stock opened at ₹46.75, reaching an intraday high of ₹46.99 before sliding to a low of ₹45.03. This decline follows a previous close of ₹48.88

Conclusion

MTNL’s recent loan default has raised significant concerns about its financial stability, leading to a sharp decline in its stock price. With an outstanding debt of ₹33,497 crore and mounting overdue payments, the company faces a challenging road ahead. Investors and stakeholders will closely monitor any government intervention or restructuring plans that could provide relief. 

As MTNL navigates its financial troubles, its future prospects will largely depend on debt management strategies and operational efficiency improvements.

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