Archive · 19 Aug 2025
MTNL's Debt Default Climbs to ₹8,659 Crore, Bond Payment Missed
MTNL, a government-owned phone company, owes a lot of money and can't pay back its loans and bond interest.
They defaulted on ₹8,659 crore in bank loans to several banks.
The total amount of debt is over ₹34,577 crore.
MTNL also missed an interest payment on its bonds.
The government has promised to pay these bonds if MTNL can't, which provides some security for investors.
MTNL's bank loan default reached ₹8,659 crore by the end of July 2025.
The company's total debt has reached ₹34,577 crore.
MTNL defaulted on bank loans between August 2024 and February 2025.
MTNL also failed to pay interest on its Bond Series VIIIB, due August 24, 2025.
All MTNL bonds are sovereign-guaranteed by the Government of India.
- Who
- Mahanagar Telephone Nigam Ltd (MTNL) and various public sector banks, including Union Bank of India and the government.
- What
- MTNL defaulted on ₹8,659 crore in bank loan repayments and failed to pay interest on bonds.
- When
- Defaults occurred between August 2024 and February 2025; bond interest due August 24, 2025.
- Where
- India
- Why
- MTNL is facing financial difficulties.
- Default Amount
- ₹8,659 crore
- Total Debt (July 2025)
- ₹34,577 crore
- Banks with Largest Defaults
- Union Bank of India, Indian Overseas Bank, Bank of India
- Bond Default
- Bond Series VIIIB, due August 24, 2025
- Bond Interest Rate
- 7.61%
- Sovereign Guarantee
- Government of India
