State-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL) has officially informed stock exchanges about its continued default in repayment of bank loans. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As per the latest filing dated February 11, 2026, MTNL has defaulted on repayment of principal instalments and interest payments to multiple public sector banks. The disclosure confirms that the company remains under severe financial stress.

The default status is updated as on January 31, 2026.

Total Default Amount: Rs 9,116 Crore

According to the exchange filing, MTNL has defaulted on a total bank borrowing of approximately Rs 9,115.65 crore (rounded to Rs 9,116 crore).

The breakup includes:

• Outstanding Principal: Rs 7,794.34 crore

• Overdue Interest: Rs 1,321.31 crore

• Additional Principal Overdue Component: Rs 2,095.72 crore

This amount relates specifically to borrowings from public sector banks.

Banks Where MTNL Has Defaulted

MTNL has defaulted on loans from the following banks:

1. Union Bank of India (UBI)

2. Bank of India (BOI)

3. Punjab National Bank (PNB)

4. State Bank of India (SBI)

5. UCO Bank

6. Punjab and Sind Bank (PSB)

7. Indian Overseas Bank (IOB)

These banks have already classified the loans as Non-Performing Assets (NPA) on different dates between August 2024 and February 2025.

Bank-Wise Exposure Details

Here is the detailed exposure of each bank:

Union Bank of India (UBI)

• Date of NPA: 12-08-2024

• Outstanding: Rs 3,976.24 crore

• Overdue Interest: Rs 641.67 crore

• Principal Overdue: Rs 759.57 crore

UBI holds the highest exposure among all lenders.

Bank of India (BOI)

• Date of NPA: 04-09-2024

• Outstanding: Rs 1,195.28 crore

• Overdue Interest: Rs 195.74 crore

• Principal Overdue: Rs 375.92 crore

Punjab National Bank (PNB)

• Date of NPA: 09-09-2024

• Outstanding: Rs 501.07 crore

• Overdue Interest: Rs 68.91 crore

• Principal Overdue: Rs 232.16 crore

State Bank of India (SBI)

• Date of NPA: 28-09-2024

• Outstanding: Rs 372.61 crore

• Overdue Interest: Rs 58.71 crore

• Principal Overdue: Rs 313.90 crore

UCO Bank

• Date of NPA: 28-09-2024

• Outstanding: Rs 291.69 crore

• Overdue Interest: Rs 45.86 crore

• Principal Overdue: Rs 245.83 crore

Punjab and Sind Bank (PSB)

• Date of NPA: 08-10-2024

• Outstanding: Rs 196.06 crore

• Overdue Interest: Rs 27.72 crore

• Principal Overdue: Rs 168.34 crore

Indian Overseas Bank (IOB)

• Date of NPA: 03-02-2025

• Outstanding: Rs 2,582.70 crore

• Overdue Interest: Rs 282.70 crore

IOB is the second largest lender to MTNL after UBI.

Total Financial Indebtedness Crosses Rs 36,000 Crore

While the bank loan default stands at Rs 9,116 crore, the company’s overall financial stress is much bigger.

MTNL has disclosed that its total financial indebtedness as of January 31, 2026 stands at:

Rs 36,026 Crore

This includes:

• Bank Loans: Rs 9,116 crore

• Sovereign Guaranteed (SG) Bonds: Rs 24,071 crore

• Loan from Department of Telecommunications (DoT) for SG Bond Interest: Rs 2,839 crore

This shows that the majority of MTNL’s debt is linked to sovereign guaranteed bonds, which are backed by government guarantee.

What Is Causing MTNL’s Financial Stress?

MTNL has been facing financial challenges for several years due to:

• Declining landline subscriber base

• Intense competition from private telecom players

• High employee costs

• Limited 4G expansion capabilities

• Weak revenue generation

The company operates mainly in Delhi and Mumbai telecom circles, but its market share has significantly reduced over the years.

Impact on Investors

MTNL shares are listed on both:

• BSE (Scrip Code: 500108)

• NSE (Symbol: MTNL)

Repeated defaults and rising debt levels increase investor concerns regarding:

• Long-term sustainability

• Interest burden

• Dependence on government support

• Ability to service sovereign bonds

However, since MTNL is a Government of India enterprise, investors often expect potential revival measures or restructuring support from the government.

Regulatory Compliance and Disclosure

The company has made this disclosure under:

• Regulation 30 of SEBI (LODR) Regulations, 2015

• SEBI Circular dated November 21, 2019

This ensures transparency to shareholders and market participants regarding material financial developments.

MTNL has been regularly updating exchanges about its default position through multiple disclosures since July 2024.

What Could Happen Next?

There are several possible scenarios:

1. Government Support: Capital infusion or debt restructuring by the Government of India.

2. Debt Restructuring Plan: Negotiation with banks for restructuring or extended repayment timelines.

3. Asset Monetisation: Sale of land, towers, or other telecom assets to raise funds.

4. Operational Revival Plan: Strategic restructuring or merger possibilities.

The future of MTNL largely depends on policy decisions and financial restructuring initiatives.

Conclusion

The latest disclosure confirms that MTNL has defaulted on Rs 9,116 crore worth of bank loans, while its total financial indebtedness has reached Rs 36,026 crore.

The majority of debt includes sovereign guaranteed bonds and borrowings from public sector banks. With mounting financial pressure and repeated NPA classifications, MTNL’s financial stability remains a key concern for investors and stakeholders.

As a Government of India enterprise, the company’s future direction will depend heavily on policy support, restructuring decisions, and revival strategies.

The coming months will be crucial in determining whether MTNL can overcome its debt burden or continue facing financial stress.

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