COMPLIANCE WITH REGULATION 30 OF SEBI (LODR) REGULATIONS, 2015 & SEBI CIRCULARNO SEBI/HO/CFD/CMD1/CIR/P/2019/140 DATED 21.11.2019 INTIMATION OF DEFAULT IN THEPAYMENT OF PRINCIPAL (INSTALMENT) & INTEREST OF BANKS BY MTNL AS ON 31.03.2026
MTNL · price
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MTNL has disclosed that it has defaulted on principal and interest payments to 7 consortium banks, with the total outstanding amount of Rs 9,262.53 crore (principal overdue Rs 7,794.34 crore + interest overdue Rs 1,468.19 crore). The banks include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank. These loans were classified as Non-Performing Assets (NPA) by the banks between August 2024 and February 2025. MTNL's total financial indebtedness stands at Rs 36,314 crore, including bank loans of Rs 9,263 crore, SG bonds of Rs 24,071 crore, and a DoT loan of Rs 2,980 crore.
This is a serious credit event indicating MTNL's acute financial stress. The NPA classification by multiple banks will likely lead to negative credit rating actions and restrict MTNL's ability to raise fresh debt. Shareholders should brace for further deterioration in the company's financial health and potential government intervention.