MTNL shares likely to crack as firm defaults on bank loans worth ₹8,346 crore; total debt obligations at ₹33,568 crore

The stock will be in the spotlight as the PSU has defaulted on bank loans worth ₹8,346.24 crore from seven public sector banks, the company said in a regulatory filing.

The loss-making public sector telecom firm's total debt obligations reached ₹33,568 crore as of March 31, 2025, according to the filing dated April 19.

The total loan default includes ₹3,633.42 crore of debt raised from Union Bank of India, ₹2,374.49 crore from Indian Overseas Bank, ₹1,077.34 crore from Bank of India, ₹464.26 crore from Punjab National Bank, ₹350.05 crore from State Bank of India, ₹266.30 crore from UCO Bank and ₹180.3 crore, along with principal and interest payments.

The defaults in loan payments have occurred between August 2024 and February 2025.

The total debt of the company comprises an ₹8,346 crore bank loan, a ₹24,071 crore sovereign guarantee (SG) bond, and a loan of ₹1,151 crore from the Department of Telecom (DoT) for paying SG bond interest, according to the filing.

In March 2025, the government said in the Parliament that MTNL earned ₹2,134.61 crore till January 2025 from the monetisation of lands and buildings.

The government informed the parliament that state-owned telecom firms BSNL and MTNL earned a total of ₹12,984.86 crore from the monetisation of land, buildings, towers and fibre since 2019.

According to data shared by Minister of State for Communications Pemmasani Chandra Sekhar in Lok Sabha, BSNL has earned ₹2,387.82 crore and MTNL ₹2,134.61 crore up to January 2025 from the monetisation of lands and buildings.

"BSNL and MTNL are monetising only those land and building assets which are not required for their own use in the foreseeable future and for which they have the rights to transfer the ownership," Sekhar said in a written reply.

MTNL share price

Shares of the PSU have fallen over 14.5% so far in 2025.