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MTNL Defaults: Government telecom company Mahanagar Telephone Nigam Limited (MTNL) is drowning in debt. The company said in its regulatory filing that it is currently facing a financial crisis. The company said that it has failed to pay the loan of Rs 8,585 crore taken from seven public sector banks and the interest on it.

MTNL shares crash after the disclosure

In a regulatory filing on Tuesday, MTNL said that it had taken a loan from some big government banks. Now it has failed to repay the entire amount including interest. The impact of this disclosure was seen on MTNL shares. On Tuesday, MTNL shares fell 4.80 per cent to close at Rs 49.59, down Rs 2.50 from the previous session. Banks named in the filing

The company has taken loans from these banks

They include Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank and Indian Overseas Bank. The company said that this default in loan payment has occurred during August 2024 to February 2025. The total outstanding amount includes principal of Rs 7,794.34 crore and interest of Rs 790.59 crore.

Took the highest loan from this bank

Among these, Union Bank of India has the highest outstanding of Rs 3,733.22 crore, followed by Indian Overseas Bank with Rs 2,434.13 crore outstanding. MTNL is burdened with heavy debt. It has a total debt of Rs 34,484 crore. This includes a loan of Rs 8,585 crore as well as a sovereign guarantee bond of Rs 24,071 crore and a loan of Rs 1,828 crore taken from the Department of Telecommunications for payment of interest on it

The government has previously provided financial assistance to the company, but given the way the debt burden on the company is increasing, questions are being raised about its recovery.