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
MTNL · price
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MTNL has defaulted on loan repayments to 7 banks — Union Bank, Bank of India, PNB, SBI, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank. All these loans have already been classified as Non-Performing Assets (NPAs) between August 2024 and February 2025. The total overdue amount stands at Rs 7,794 crore in principal and Rs 865 crore in interest, against total bank borrowings of Rs 8,659 crore. The company's total financial indebtedness is a massive Rs 34,577 crore, including sovereign guarantee bonds of Rs 24,071 crore. This is a continuation of monthly default disclosures filed by MTNL since July 2024, indicating the company has not been able to resolve its debt situation.
This signals deep and continuing financial distress for the government-owned telecom company. Shareholders should expect negative sentiment on the stock as the company has effectively defaulted on nearly 90% of its bank debt. With a debt burden of Rs 34,577 crore far exceeding its operational capacity, the path to recovery remains unclear without major government intervention or restructuring.