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MTNL’s Bank Default Climbs to ₹8,659 Crore as Total Debt Reaches ₹34,577 Crore

Sovereign guarantees make the government the ultimate backstop, underscoring investor focus on state support.

Pakistan's stock market has surprised several people, attracting global investors
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Overview

  • An exchange filing reports unpaid dues of ₹8,659 crore to seven public sector lenders, including ₹7,794 crore in principal and ₹865 crore in interest.
  • The largest exposures are to Union Bank of India (₹3,768 crore), Indian Overseas Bank (₹2,455 crore) and Bank of India (₹1,131 crore), with smaller amounts owed to PNB, SBI, UCO Bank and Punjab & Sind Bank.
  • The missed repayments relate to schedules originally due between August 12, 2024 and February 3, 2025.
  • MTNL’s total borrowings stood at ₹34,577 crore as of July 31, including about ₹24,071 crore of sovereign-guaranteed bonds and ₹1,921 crore borrowed to service bond interest.
  • The company reportedly failed to make the required escrow deposit for interest on Bond Series VIIIB due August 24, 2025, signaling continuing liquidity stress.