Default in payment of principal instalments and interest to banks, updated as on 30.09.2026
MTNL has disclosed a default in payment of principal instalments and interest to banks, updated as on 30.09.2026.
- Current default amount (INR crore)
- 9,731.83
- Total bank borrowings
- Rs 9,732 crore
- Total financial indebtedness
- Rs 37,553 crore (SG Bonds Rs. 24,071 crore, DoT loan Rs. 3,750 crore)
What the company has intimated
MTNL has shared an intimation of default in the payment of principal (instalment) and interest to banks, in an update as on 30.09.2026. The letter is marked "further to" a series of earlier letters of even number listed in the update, the most recent dated 14.09.2026.
Which lenders are covered
- The banks named are Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank and Indian Overseas Bank.
- The update prints a "Date of NPA" against each bank, ranging from 12-08-2024 to 03-02-2025.
- The largest amounts in the table relate to Union Bank of India and Indian Overseas Bank.
The default amounts as printed (in INR crore)
- Current default amount, table total: 9,731.83
- Outstanding principal: 7,794.34
- Overdue interest: 1,937.49
- Overdue principal: 2,245.72
The wider debt picture
- Total outstanding borrowings from banks and financial institutions: Rs 9,732 crore.
- Total financial indebtedness, including short term and long term debt: Rs 37,553 crore.
- That total is made up of bank loans of Rs. 9,732 crore, SG Bonds of Rs. 24,071 crore and a loan from the Department of Telecommunications of Rs. 3,750 crore taken for paying SG Bond interest.
How a retail investor may read it
- The letter is the company's own intimation of default in instalment and interest payments, which can be perceived as a negative development for sentiment.
- The NPA dates printed in the table go back to 2024 and early 2025, and the update links this letter to earlier intimations of the same nature.
- The default figures relate to bank loans; the total financial indebtedness is much larger because it also includes the SG Bonds and the DoT loan.
Points to track
- Follow-up intimations from the company on whether the default position changes.
- How the bank dues and the SG Bond and DoT related liabilities are dealt with in later disclosures.
Also from Mahanagar Telephone Nigam
Brickwork upgrades MTNL's Rs. 6500.00 crore bonds to BWR AAA (CE)/Stable from BWR AA+ (CE) Rating Watch; unsupported rating reaffirmed at BWR D
8 Oct 2026
Brickwork upgrades MTNL's Rs. 6500.00 crore bonds to BWR AAA (CE)/Stable from BWR AA+ (CE)
8 Oct 2026
MTNL stock surged up to 8-11% intraday on heavy volumes after the board approved sale of its Powai plot for around 891 crore rupees as part of asset monetization
1 Oct 2026
More numbers
- Current default amount (table total, INR crore)9,731.83
- Outstanding principal total (INR crore)7,794.34
- Overdue interest total (INR crore)1,937.49
- Overdue principal total (INR crore)2,245.72
- Total outstanding borrowings from banks/financial institutionsRs 9,732 crore
- Total financial indebtednessRs 37,553 crore
- SG BondsRs. 24,071 crore
- Loan from DoT for paying SG Bond InterestRs. 3,750 crore
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