State-run telecom operator MTNL has defaulted on bank loans amounting to ?8,585 crore from seven public sector banks, according to a regulatory filing made on Tuesday.

As per the filing, MTNL’s total debt stood at ?34,484 crore as of June 30, 2025. This includes ?8,585 crore in bank loans, ?24,071 crore in sovereign guarantee bonds, and ?1,828 crore in loans from the Department of Telecommunications (DoT) for interest payments on sovereign guarantee bonds.

The loan default comprises Rs 3,733.22 crore from Union Bank of India, Rs 2,434.13 crore from Indian Overseas Bank, Rs 1,121.09 crore from 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 UCO Bank, and Rs 184.82 crore from Punjab & Sind Bank — including both principal and interest dues.