Analyst Concall
HUDCO to become zero NPA company in 15 months, says mgmt
This story was originally published at 17:54 IST on 12 November 2025
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--HUDCO: Making all efforts to become zero NPA company in 15 months
--CONTEXT: Comments by HUDCO's mgmt at analyst call post Jul-Sept earnings
--HUDCO: Expect NIM to improve by 10 bps in Oct-Dec
--HUDCO: Aim to disburse loans worth INR 500 bln in FY26
--HUDCO: Expect loan disbursals to grow 25% to 30% in FY26
By Krity Ambey and Pallavi Singhal
NEW DELHI – State-owned Housing and Urban Development Corp. Ltd. will have zero non-performing assets on a net basis in the next 15 months, the non-banking finance company's management said Wednesday, adding that they were making all efforts to achieve the goal. HUDCO's net NPA ratio recovered to 0.07% as of Sept. 30 from 0.09% on Jun. 30 and 0.31% on Sept. 30, 2024.
"We are very aggressive towards resolution of our assets," the management said at a call with analysts after the financial results for the September quarter released Monday. The company expects resolution of assets worth INR 2 billion in Oct-Dec and another INR 2.5 billion in the subsequent quarter, the management said.
In the September quarter, HUDCO resolved an NPA and recovered INR 129.40 million. The financier reported a reversal of impairment on financial instruments and write-offs to the tune of INR 170 million in the reporting quarter. But the NBFC's net profit rose only 3% on year to INR 7.10 billion in Jul-Sept, as its finance cost weighed on its performance. HUDCO's net interest margin was 3.43% as of Sept. 30, which is likely to improve 10 basis points in Oct-Dec, according to the management.
With efforts to improve asset quality in place, HUDCO has also decided to foray into lending to the private sector to increase the size of its loan book, the management said. Nearly 99% of the company's loan book consists of loan to the government and its agencies.
Lending to the private sector may help the NBFC's loan disbursals to grow 25-30% in the current financial year, the management said. HUDCO's loan disbursal rose 19% to INR 258.38 billion in the first six months of the year. The company expects to disburse loans worth INR 242 billion, taking total disbursals in 2025-26 (Apr-Mar) to INR 500 billion, the management said.
The management has set a target to increase the size of the loan book to INR 3.00 trillion by 2030. A growth of 25–30% in annual loan disbursal should be ideal for the company to reach its target, the management said. HUDCO's loan book was INR 1.45 trillion as of Sept. 30. Shares of HUDCO, which held the call after market hours, closed 1.5% lower Wednesday at INR 227.17 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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