HUDCO’s sanctions hit a record INR92,985 crores in H1, a 22% growth. Disbursements increased 19% to INR26,000 crores. Loan book grew 30% to INR144,000 crores. The company aims for zero net NPA within 15 months. They’re expanding into private sectors and urban infrastructure, targeting 25-30% growth with a focus on asset quality and value creation.
Record-Breaking Sanctions & Growth
HUDCO achieved its highest-ever 6-monthly sanctions, reaching approximately INR92,985 crores. This represents a substantial 22% growth compared to the same period last year. The company is financing a broad range of infrastructure projects covered under the Government of India’s harmonized list.
Disbursements also saw significant growth, increasing by around 19% to reach approximately INR26,000 crores in H1. The loan book expanded by 30%, growing from INR111,000 crores to INR144,000 crores. HUDCO aims to maintain a growth rate of around 30%.
Financial Performance Highlights
HUDCO has successfully reduced its cost of funds and raised approximately INR32,000 crores at a weighted average rate of 6.32%. Revenue from operations grew by 31% year-over-year, rising to around INR6,100 crores. Profitability also increased by 7.55%.
The gross NPA has been reduced to 1.21% (INR1,750 crores), with a net NPA of 0.07%. HUDCO is committed to achieving zero net NPA within 15 months.
Strategic Initiatives and Future Outlook
HUDCO is actively working on monetizing its land bank to enhance its bottom line. Excluding External Budgetary Resources (EBR), Net Interest Margins (NIMs) stand at 3.43%, or around 3% including EBR. The company’s Return on Equity (ROE) has improved to 1.93%, with a return on equity of around 15%. The Capital to Risk (Weighted) Assets Ratio (CRAR) remains strong at around 38%.
Expansion into New Sectors
HUDCO has launched an urban infrastructure window to support infrastructure development in Urban Local Bodies (ULBs). It is also targeting funds from the Urban Challenge Fund through this window. The company is expanding into the private sector, focusing on ports, airports, roads, energy, and real estate. HUDCO plans to maintain a growth rate of 25% to 30%.
Addressing Forex Fluctuations
HUDCO incurred a loss of around INR176 crores in H1 2026 due to foreign exchange fluctuations. Measures have been taken to protect against future volatility, with most Foreign Currency Non-Resident (FCNR) positions expected to mature by March 2026.
Source: BSE