MTNL defaults on ₹8,277 crore in bank loans

According to a regulatory filing, the lenders included Union Bank of India (UBI), Bank of India (BOI), Punjab National Bank (PNB), State Bank of India (SBI), UCO Bank, Punjab and Sind Bank (PSB), and Indian Overseas Bank (IOB).

The PSU initially defaulted an outstanding amount of ₹3,602.44 crore to the UBI on August 12, 2024. Later, it failed to repay ₹1,069.22 crore to the BOI on September 4 and ₹460.78 crore to the PNB on September 9.

On September 28, MTNL missed the repayment of ₹345.77 crore to SBI and ₹263.75 crore to UCO Bank. Additionally, it defaulted on ₹178.80 crore to PSB on October 8 and ₹2,356.55 crore to IOB on February 3, 2025.

The total default amount is ₹8,277.31 crore, which includes ₹7,794.34 crore in principal payments, ₹482.97 crore in overdue interest and ₹1,450.36 crore in overdue principal, MTNL said.

The Navratna firm's total debt stood at ₹33,497 crore, comprising bank loans (₹8,277 crore), sovereign gold bonds (₹24,071 crore) and loan from DOT for paying the sovereign gold bond interest (₹1,149 crore).

MTNL earns ₹2,135 crore from asset monestisation

On Thursday, March 13, MTNL shares surged as much as 18.29% to an intraday high of ₹51.18 apiece on the National Stock Exchange (NSE) after reports revealed that it received ₹2,134.61 crore from the monetisation of lands and buildings up to January 2025.

Further, MTNL earned ₹258.25 crore from monetising close assets like towers and fibres up to January 2025, according to the data shared by the Minister of State for Communications Pemmasani Chandra Sekhar in the Lok Sabha.

MTNL stock reaction

Shares of MTNL closed in the green at ₹48.88, up 13.04% on the NSE on Thursday, March 13.

The scrip surged 14.9% over the week and 16.3% since the beginning of March. However, it has lost 2.92% on a year-to-date basis.

MTNL has a total market capitalisation of ₹3,036.60 crore as of March 15, 2025, on the NSE.