Mumbai, Aug. 18 -- Mahanagar Telephone Nigam Ltd. (MTNL) has defaulted on loan repayments yet again, raising further questions on the revival of the state-run telecom operator.

The Mumbai-based company has failed to pay Rs.8,659 crore (about $990.48 million) principal and interest to seven public sector lenders, including State Bank of India and Punjab National Bank, according to an exchange filing on Monday. It includes Rs.7,794 crore in principal and Rs.865 crore in overdue interest. These repayments were due between 12 August 2024 and and 3 February 2025.

In July, MTNL had disclosed defaults of Rs.8,585 crore to the same lenders.

The debt-laden operator, which has struggled with falling subscriber numbers, mounting losses and shrink...