MTNL reports Rs 9,812.04 crore bank default as of October 31

Mahanagar Telephone Nigam Limited reported Rs 9,812.04 crore of unpaid bank principal and interest as of October 31, 2026, across seven lenders, led by Rs 4,280.59 crore due to Union Bank of India. MTNL also reported total financial indebtedness of Rs 37,633 crore, including bank loans, bonds and bond interest.

What did MTNL disclose about its bank-payment default?

MTNL disclosed a current default amount of Rs 9,812.04 crore for principal and interest payments to seven banks as of October 31, 2026. The November 11, 2026 communication was issued under listing-disclosure requirements, while the filing table records October 31, 2026 as the disclosure date.

The Rs 9,812.04 crore total comprises Rs 7,794.34 crore of outstanding principal and Rs 2,017.70 crore of overdue interest. MTNL separately reported Rs 2,245.72 crore of overdue principal, a figure that differs from the total outstanding-principal amount in the lender schedule.

MTNL described the obligation as principal and interest payments and listed Rs 9,812 crore under total principal obligations. The reporting template refers to tenure, interest rate and security status, but MTNL did not provide those loan terms in the supplied disclosure.

Which banks account for MTNL's Rs 9,812.04 crore default?

Union Bank of India accounts for the largest reported MTNL default, at Rs 4,280.59 crore, followed by Indian Overseas Bank at Rs 2,780.11 crore. Their combined Rs 7,060.70 crore was higher than the combined Rs 2,751.34 crore reported for the other five lenders.

Bank of India was the third-largest lender in the schedule at Rs 1,295.44 crore, while Punjab National Bank was listed at Rs 536.33 crore. State Bank of India, UCO Bank and Punjab and Sind Bank accounted for Rs 401.70 crore, Rs 307.02 crore and Rs 210.85 crore, respectively.

Union Bank of India's Rs 4,280.59 crore balance exceeded Indian Overseas Bank's Rs 2,780.11 crore by Rs 1,500.48 crore. Punjab and Sind Bank had the smallest reported amount, at Rs 210.85 crore, compared with Rs 946.02 crore of overdue interest alone at Union Bank of India.

When did the lender defaults and NPA classifications occur?

MTNL's schedule places lender dates between August 12, 2024 and February 3, 2025 alongside its default and non-performing asset, or NPA, fields. Union Bank of India is listed with August 12, 2024, while Indian Overseas Bank is listed with February 3, 2025.

The listed dates for Bank of India, Punjab National Bank, State Bank of India, UCO Bank and Punjab and Sind Bank are September 4, 2024, September 9, 2024, September 28, 2024, September 28, 2024 and October 8, 2024, respectively. Thus, six of the seven lender entries fall between August and October 2024, with Indian Overseas Bank appearing later in February 2025.

MTNL's November 11, 2026 letter also cites earlier default intimations from July 5, 2024 through October 9, 2026. That record shows the October 31, 2026 schedule was an updated disclosure, rather than the company's first notification of bank-payment defaults.

How does MTNL's bank default compare with total financial indebtedness?

MTNL reported Rs 37,633 crore of total financial indebtedness, including Rs 9,812 crore of bank loans, Rs 24,071 crore of bonds and Rs 3,750 crore of bond interest. The bank-loan figure is rounded in this total-debt disclosure, compared with the Rs 9,812.04 crore current-default total in the detailed lender schedule.

The Rs 24,071 crore bond component was Rs 14,259 crore higher than the Rs 9,812 crore bank-loan component. Bond interest of Rs 3,750 crore was separately included in total financial indebtedness, meaning the Rs 37,633 crore figure includes interest as well as borrowing principal.

MTNL also reported Rs 9,812 crore as total outstanding borrowings from banks and financial institutions. That amount matches the rounded bank-loan component in its total-indebtedness disclosure and closely corresponds to the lender-level default schedule of Rs 9,812.04 crore.

What do the principal and interest figures show by lender?

MTNL reported Rs 2,017.70 crore of overdue interest, with Union Bank of India accounting for Rs 946.02 crore, Indian Overseas Bank for Rs 480.11 crore and Bank of India for Rs 295.90 crore. Those three lenders together accounted for Rs 1,722.03 crore of the reported overdue-interest total.

For outstanding principal, Union Bank of India's Rs 3,334.57 crore was the highest amount, followed by Indian Overseas Bank's Rs 2,300.00 crore. Punjab and Sind Bank had the lowest outstanding principal at Rs 168.34 crore, against Rs 999.54 crore for Bank of India.

The overdue-principal field does not match outstanding principal for each lender. Union Bank of India had Rs 834.57 crore of overdue principal against Rs 3,334.57 crore of outstanding principal, while Indian Overseas Bank showed a dash for overdue principal despite Rs 2,300.00 crore of outstanding principal and Rs 480.11 crore of overdue interest.

Conclusion

MTNL's October 31, 2026 filing records Rs 9,812.04 crore of bank-payment default across seven lenders, with Union Bank of India and Indian Overseas Bank accounting for Rs 7,060.70 crore. The default schedule sits alongside total financial indebtedness of Rs 37,633 crore, including Rs 24,071 crore of bonds and Rs 3,750 crore of bond interest.

The unresolved matter is the bank-default balance and its treatment by the seven lenders. MTNL disclosed earlier updated default notifications through October 9, 2026, but the supplied filing sets out no repayment plan, settlement arrangement, restructuring target or resolution timetable.