Housing & Urban Development Corporation Limited — Investor Meet, 14-05-2025: Analysts/Institutional Investor Meet/Con. Call Updates

HUDCO’s loan sanctions jumped to INR1.27 lakh crores in FY25 from INR82,000 crores in FY24, with disbursements doubling to INR40,000 crores. The loan book target is INR1.5 lakh crores by FY26 and INR3 lakh crores by 2030, possibly higher as new government schemes clarify. Asset quality remains strong with net NPAs at 0.25%, and INR2,000 crores NPAs expected to resolve within 18 months. Cost of funds improved 35 bps to 6.75%, keeping NIM stable near 3.23%. HUDCO will cautiously enter PPP/private projects, focusing on quality deals without fixed targets. Opex rose due to headcount and capacity building. Capital adequacy stands around 50%, with no immediate capital raise planned. Funding costs could reduce further with new instruments like 54EC bonds (INR5,000 crores). A robust pipeline of INR2 lakh crores plus MOUs worth INR8 lakh crores underpins steady growth.