HUDCO aiming for zero bad loans, planning overseas debt issue: CEO Kulshestha

Housing and Urban Development Corporation (HUDCO)

Housing and Urban Development Corporation (HUDCO) is targeting zero bad loans over the next 18 months, chief executive officer Sanjay Kulshestha has said.

In a post-earnings press conference on May 7, the CEO also announced plans to disburse Rs 50,000 crore in the current fiscal year.

The state-run housing and infrastructure company is targeting a 25 percent growth in the loan book this fiscal and an increase in borrowing plan to Rs 65,000 crore.

In FY25, HUDCO’s loan portfolio grew 35 percent to end the fiscal with borrowings of Rs 55,000 crore.

To support growth, HUDCO plans to raise $2 billion in overseas funding this fiscal year through a combination of bonds and loans, he said.

Overseas borrowings would constitute roughly one-fifth of the total borrowings, though the company may adjust the financial instruments used.

Kulshestha said HUDCO is exploring bond sales in international markets, particularly in Japan, as they offer fixed rates compared to the variable rates of loans.

The company is also in talks for a $500 million-equivalent loan in Japanese Yen, expected to be finalised by September, he added.

The company also plans to raise up to Rs 1,000 crore through the 54EC route, a tax-exempt instrument with a 5.45 percent interest rate and a five-year lock-in period.

HUDCO intends to issue a zero-coupon bond next month, though details on pricing and volume were not disclosed.

For FY26, the company aims to lower borrowing costs while maintaining net interest margins between 3.3 percent and 3.4 percent.

In Q4 FY25, HUDCO’s consolidated net profit grew 4 percent to Rs 7,27.74 crore from the year-ago period.

Total income surged to Rs 2,854.91 crore from Rs 2,194.04 crore. For FY25, HUDCO’s net profit rose to Rs 2,709.14 crore, up from Rs 2,116.69 crore in FY24.