Government telecom company Mahanagar Telephone Nigam Limited (MTNL) has not repaid loan installments of Rs 8,346.24 crore to 7 public sector banks. The company has given this information in a regulatory filing on 19 April. MTNL’s total debt has reached Rs 33,568 crore as of March 31, 2025. MTNL did not repay loan installments between August 2024 and February 2025. MTNL has been in debt for the last several years. The company is also facing difficulty in paying salaries and pension to the employees. The company is running in loss MTNL has been battling financial crisis for the last several years. In 2022-23, the company recorded a loss of Rs 3,800 crore. Experts believe that competition from private companies and old infrastructure are the major reasons for this crisis. Government issues sovereign guarantee bonds to save MTNL from sinking. The central government has already issued sovereign guarantee bonds worth Rs 24,071 crore to save MTNL. The government is now considering the merger of MTNL and BSNL, but no concrete plan has been made for this yet. MTNL share rises 500% in 5 years. MTNL share has given the investors a profit of more than 500% in 5 years. But this year till now, a decline of 14.65% has been registered. In the last 6 months, the share has given a negative return of 13.14%. On Thursday, the share closed at Rs 43.85 with a marginal decline of 0.16%. The market capital of the company is Rs 2,760 crore.
