MTNL Default Loan: Once providing 500% returns to investors, MTNL is today a state-owned telecom company that has defaulted on a loan of ₹8,346 crore. It was the end of March 2025 that saw the total debt of the company rise to a staggering ₹33,568 crore, paving the entrance to a serious question mark about its financial status and future ahead.
Which Loans Did MTNL Default On?
According to a regulatory filing on April 19, MTNL failed to repay loans taken from seven public sector banks, including:
- Union Bank of India – ₹3,633.42 crore
- Indian Overseas Bank – ₹2,374.49 crore
- Bank of India – ₹1,077.34 crore
- Punjab National Bank – ₹464.26 crore
- State Bank of India – ₹350.05 crore
- UCO Bank – ₹266.30 crore
- Principal & interest dues – ₹180.3 crore
The default period spans from August 2024 to February 2025, indicating prolonged financial distress.
Breaking Down MTNL’s Debt Burden
MTNL’s total debt comprises:
- Bank loans – ₹8,346 crore
- Government-guaranteed (SG) bonds – ₹24,071 crore
- Department of Telecom (DoT) liabilities – ₹1,151 crore (taken for SG bond interest payments)
This alarming debt situation highlights the company’s deep-rooted financial struggles, despite being a government-backed entity.
MTNL Share Performance: A Rollercoaster Ride
Surprisingly, while drowning in debt, MTNL shares have delivered phenomenal returns in the past:
- 500% returns over the last five years
- 21.60% gain in the past year
However, the stock has faced significant pressure in 2025:
- Down 14.65% year-to-date (YTD)
- 52-week high: ₹101.88 (July 29, 2024)
- 52-week low: ₹32.70 (June 5, 2024)
On the last trading session (Thursday, April 18), MTNL shares closed at ₹43.85, marking a slight dip of 0.16%.