Hudco aims for 200% surge in lending to reach Rs 3 trillion by 2030: Report

Accorded Navratna status in April, Hudco operates in housing, infrastructure financing, and consultancy services.

The state-run Housing & Urban Development Corporation (Hudco) is set to boost its lending nearly 200 percent to Rs 3 trillion by the end of this decade to address the rising demand for affordable housing and infrastructure financing. Chairman and Managing Director Sanjay Kulshrestha shared about this ambitious target in an interview with Mint.

Hudco’s loan book stands at Rs 1.03 trillion. Kulshrestha highlighted the company's strategy to achieve this goal by exploring public-private partnership (PPP) models for infrastructure financing and expanding its international presence in project consultancy. The company is also awaiting approval from the Reserve Bank of India (RBI) to be a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC).

"By 2030, we expect to easily reach a Rs 3-trillion loan book if we proceed cautiously and maintain good business practices. We plan to incorporate PPP models and engage with the private sector, which will contribute to our growth," Kulshrestha said.

Hudco is analysing PPP models where cash flows are secured through regulatory arrangements, such as power energy projects. The company has successfully reduced its net non-performing assets (NPA) ratio to 0.36 percent, a benchmark few financial institutions achieve.

Accorded Navratna status in April, Hudco operates in housing, infrastructure financing, and consultancy services. Its current loan portfolio is split between affordable housing (51 percent) and infrastructure projects (49 percent), including roads, urban mobility, social infrastructure, water supply, and renewable energy.

Kulshrestha pointed out that housing will remain the primary growth driver in the coming years, particularly with the Pradhan Mantri Awas Yojana 2.0 scheme aimed at constructing 10 million urban homes. The scheme's estimated Rs 10 trillion investment includes Rs 2.2 trillion from the Centre and Rs 7.8 trillion from state governments, presenting significant financing opportunities for Hudco.

In addition to its domestic growth plans, Hudco is exploring international consultancy opportunities and is in discussions with Exim Bank and other stakeholders to expand its global footprint.