State-run lender HUDCO has set an ambitious target to reach a loan book of ₹3 lakh crore by 2030, nearly doubling from its current ₹1.6 lakh crore, as stated by Chairman and Managing Director Sanjay Kulshrestha in recent interviews with NDTV Profit. The company's loan book has already doubled in the last three years with an annual growth rate of 28-29%, driven by government schemes including PMAY, Amrut, Jal Jeevan Mission and the Urban Challenge Fund. Kulshrestha expressed confidence in achieving this target, citing the company's consistent track record of meeting its objectives.
State-run lender HUDCO has extended in-principle approval for lending of around ₹13,000 crore under the Centre's Urban Challenge Fund, according to reports from Business Standard. As reported by the company's CMD Sanjay Kulshrestha, there are around 30-40 projects for which these amounts have been discussed, with some projects already sanctioned by the apex body. The Urban Challenge Fund - a ₹4 lakh crore programme with 25% central government subsidy - provides HUDCO with a multi-year runway that few infrastructure lenders can match. The company is positioning itself to play a handholding role for urban local bodies (ULBs) and states to drive municipal and city financing through its Urban Invest Window framework.
According to Business Standard, HUDCO reported a net profit of ₹1,981 crore for Q4 FY26, which was 173 per cent higher than the same period last year. The company's full financial year net profit reached ₹4,034 crore, which was 49 per cent higher than FY25. However, the company saw a negative tax expense of ₹1,360 crore and its operating profit dipped 28.5 per cent to ₹630 crore for the quarter. The only challenge identified is a slight dip in net interest margins, which Kulshrestha attributes to temporary pressure from rapid growth, though he reaffirmed guidance of 3% to 3.2% NIMs.
According to NDTV Profit, HUDCO's asset quality metrics demonstrate strong performance with the company targeting absolute zero NPAs on new sanctions. Of the existing ₹1,600 crore NPA pool, the company is targeting at least ₹500 crore in recoveries this financial year, with ₹1,100 crore already under various stages of NCLT proceedings. The company's gross NPA ratio for FY26 stood at 1.05 per cent and the net NPA ratio was 0.05 per cent, as reported by Business Standard. The CMD emphasized the company's focus on maintaining robust asset quality while expanding its urban project financing activities under the Urban Challenge Fund initiative.
