THIS govt company in HUGE debt, defaults on bank loans worth whopping Rs...

State-run telecom company MTNL has defaulted on bank loans worth Rs 8,585 crore from seven public sector banks, the firm said in a regulatory filing on Tuesday (July 15). The loss-making public sector telecom firm's total debt obligations reached Rs 34,484 crore as on June 30, 2025 comprising bank loans of Rs 8,585 crore, sovereign guarantee bond Rs 24,071 crore and loan for DoT for paying Sovereign Guarantee Bond interest Rs 1,828 crore, according to the filing.

Which banks are involved?
The total loan default includes Rs 3,733.22 crore of debt raised from the Union Bank of India, Rs 2,434.13 crore from Indian Overseas Bank, Rs 1,121.09 crore of Bank of India, Rs 474.66 crore from Punjab National Bank, Rs 363.43 crore from State Bank of India, Rs 273.58 crore from the UCO Bank and Rs 184.82 crore from Punjab & Sind Bank, along with principal and interest payment. The defaults in loan payment have occurred between August 2024 to February 2025. The state-run firm had reported a default of Rs 8,346.24 crore at the end of March 31, 2025 that occurred during the same period of August 2024 to February 2025.

Who owns MTNL?
MTNL, short for Mahanagar Telephone Nigam Limited, is a govt-owned company set up in 1986. A fully-owned subsidiary of the govt's Bharat Sanchar Nigam Limited (BSNL), the company offers fixed-line, mobile (GSM and CDMA), and broadband internet services. Both BSNL and MTNL have faced significant financial challenges for a long time, which include defaulting on massive bank loans.

(With inputs from news agency PTI).