Acuite Ratings has assigned a rating of ‘ACUITE AAA’ with a Stable outlook to Housing and Urban Development Corporation Limited (HUDCO) for its proposed ₹4500 crore Perpetual Additional Tier 1 Bonds. The rating reflects HUDCO’s strategic importance to the Government of India, its long track record, diversified resource profile, and steady growth in its lending portfolio.
Rating Upgrade Highlights
Acuite Ratings has assigned a long-term rating of ‘ACUITE AAA’ (read as ACUITE triple A) on the ₹4500 crore Proposed Perpetual Additional Tier 1 Bonds Facility of Housing and Urban Development Corporation Limited (HUDCO). The outlook is ‘Stable’.
Rationale for the Rating
The rating factors in Government of India’s (GoI) ownership (GoI holds 75% stake in HUDCO as on Sep 30, 2025) and the strategic role of HUDCO as the nodal agency for key GoI programmes in affordable housing and urban development projects in India. The rating predominantly derives from HUDCO’s long track record in housing and urban development projects, diversified resource profile, adequate capitalization levels and a steady growth in the lending portfolio.
Financial Performance
The average cost of funds stood at 7.45% in FY25. HUDCO’s capitalization profile for FY2025 has gearing of 5.97 times compared to 4.45 times as on FY2024 and 4.07 times as on FY2023. The AUM has grown by ~35% from Rs.92,654 Cr. as on FY2024 to Rs.1,24,828 Cr. as on FY2025. The PAT has improved by 28% on YoY basis from Rs. 2116.74 Cr. during FY2024 to Rs. 2709.14 Cr. during FY2025. The asset quality of the company marked by the GNPA which stood at 1.67% for FY2025 from 2.71% in FY2024 and the NNPA also decreased to 0.25% in FY2025 from 0.36% in FY2024.
Concentrated Loan Book
The loan book has high concentration as its top 20 borrowers accounts for 79% of its overall portfolio.
Source: BSE
