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Housing & Urban Development Corporation Limited (HUDCO) announced that its 'Bond Allotment Committee' in a meeting held on 06 June 2025, has approved the raising of Unsecured, Taxable, Redeemable, Non-Convertible, Non-Cumulative NCDs of face value of ₹1,00,000 each (Series-C 2025) aggregating upto ₹750.00 Crore on a Private Placement basis.

Key details of the NCDs are as follows:

• Size of the Issue: Total Issue Size: ₹750 Crore (Base Issue Size: ₹500 Crore, Green Shoe Option: ₹250 Crore).
• Listing: Proposed to be listed on BSE.
• Tenure: Bonds are redeemable at par at the end of 3rd Year.
• Coupon/Interest Offered: Coupon Rate: 6.52%.
• Schedule of Payment of Interest and Principal: June 06, 2026, June 06, 2027, June 06, 2028.
• Charge/Security: Unsecured.

• Housing & Urban Development Corporation Limited (HUDCO) has announced the re-appointment of Dr. Ravindra Kumar Ray (DIN: 09394495) as a Non-Official Independent Director (Additional Director) on its Board.
• The re-appointment is effective immediately for a period of 1 year from the date of the Ministry of Housing and Urban Affairs (MoHUA) Order No. A-42012(12)/2/2019-AA-UD-Part(1)(E-9086347) dated 15th May 2025, or until further orders, whichever is earlier.
• The Board of Directors approved this re-appointment through a resolution passed by circulation on 29th May 2025.
• Dr. Ravindra Kumar Ray does not hold any shares in HUDCO and is not inter-se related with other directors on the Board. He is also not debarred from holding the office of director by virtue of any SEBI order or any other such authority.
• Dr. Ray holds a Ph.D. in History and has over three decades of teaching experience. He is an active political and social worker, having served as a member of the 16th Lok Sabha, and previously as a two-term member of the Bihar and Jharkhand assembly, and a Cabinet Minister in the Government of Jharkhand.

ICRA Limited has assigned/reaffirmed the credit ratings for Housing & Urban Development Corporation Limited (HUDCO) on 14 May 25. Key rating actions and details are as follows:

• ICRA assigned an [ICRA]AAA (Stable) rating for a new Long-term borrowing programme FY2026 of ₹65,000 crore.
• ICRA reaffirmed the [ICRA]AAA (Stable) rating for the Long-term borrowing programme FY2025 of ₹42,775 crore.
• ICRA reaffirmed and assigned the [ICRA]AAA (Stable)/[ICRA]A1+ rating for the Long-term/Short-term fund based/Non-fund based limits, enhancing the amount from ₹50,000 crore to ₹1,30,000 crore.
• ICRA reaffirmed the [ICRA]A1+ rating for the Commercial paper programme of ₹10,000 crore.
• The total rated amount has increased from ₹1,29,810 crore to ₹2,47,775 crore.
• ICRA reaffirmed and withdrew the [ICRA]AAA (Stable) rating for a ₹27,035 crore Long-term borrowing programme (FY2025) as there was no amount outstanding.
• The ratings derive strength from HUDCO's sovereign ownership (75% by GoI), strategic role as a nodal agency for housing and urban infrastructure, and low credit risk profile due to government-backed exposures.
• Healthy capitalisation (CRAR of 47% as on 31 March 25), adequate earnings, good financial flexibility, and diversified resource profile also support the ratings.
• Gross Stage 3 assets improved to 1.7% and Net Stage 3 to 0.2% as on 31 March 25 (compared to 2.7% and 0.4% on 31 March 24), supported by strong book growth and recoveries.
• Profit after tax (PAT) was ₹2,709 crore in FY2025, up from ₹2,117 crore in FY2024, with Return on Managed Assets (RoMA) at 2.4% in both years. Profitability is expected to remain adequate.
• Key challenges include concentration risk to states like Telangana and Andhra Pradesh, although this is declining with book growth and mitigated by government guarantees.
• The Stable outlook reflects ICRA's expectation of HUDCO's continued strategic importance to the GoI and maintenance of its financial profile.

Housing & Urban Development Corporation Limited (HUDCO) held its Q4 FY25 earnings conference call on 8 May 25, discussing the company's performance, strategic role, and future outlook.

Key highlights from the call:

• HUDCO, an NBFC-IFC and over 5-decade-old organization, plays a strategic role in the Government of India's 'Viksit Bharat' ambition, working closely with the Ministry of Housing and Urban Affairs.
• The company's sanctions grew significantly from ₹24,000 crore in FY23 to ₹1.27 lakh crore in FY25.
• Disbursements in FY25 were slightly more than ₹40,000 crore, more than double the previous year's figure of around ₹17,000-₹18,000 crore.
• Net NPA stands at 0.25%, with efforts underway to resolve around ₹2,000 crore in NPA accounts within 18 months. Approximately ₹1,100 crore of NPAs are under NCLT, with around ₹800 crore already having resolution/liquidation orders received.
• Management expects to recover around ₹400 crore to ₹500 crore from NPA resolutions in the current financial year (FY26).
• Cost of funds was reduced by around 35 basis points, from 7.1% to 6.75% in FY25. The company aims for a further reduction of 10-15 basis points in FY26, potentially aided by expected repo cuts and the launch of 54 EC bonds and a ₹5,000 crore zero-coupon bond.
• Net Interest Margin (NIM) improved from 3.18% to 3.22% in FY25 and is expected to remain around 3.25% to 3.3%.
• Yield improved from 9.04% to 9.5% in FY25.
• Return on Assets (ROA) grew from 2.42% to 2.44%, and Return on Equity (ROE) reached 15% in FY25.
• The company maintains a long-term loan book target of ₹3 lakh crore by 2030 and ₹1.5 lakh crore by FY26. Management acknowledged the potential to surpass the FY26 target depending on the visibility of disbursements from schemes like PMAY 2.0 and the Urban Challenge Fund.
• HUDCO is cautiously exploring private sector/PPP lending, emphasizing selective entities (A-rated), segments, projects, and robust monitoring based on past lessons.
• Operating expenses increased partly due to the recruitment of 63 new employees to enhance capacity.
• Discussion included MTM valuation losses on fair value changes primarily due to currency fluctuations (USD vs INR movement), noted as notional.
• The company is close to achieving RBI's guidance of 75% infrastructure lending, including affordable housing under the harmonized list.

Housing & Urban Development Corporation Limited (HUDCO) announced on 9 May 2025 that CARE Ratings Limited has assigned/affirmed its credit ratings.

Key Rating Actions by CARE Ratings Limited (dated 9 May 2025):

• Long-term / Short-term bank facilities (enhanced from ₹50,000 crore to ₹80,000 crore): Reaffirmed at CARE AAA; Stable / CARE A1+
• Long-term instruments – Bonds (various series FY11-12 to FY24-25, total amount reaffirmed): Reaffirmed at CARE AAA; Stable
• Long-term instruments – Bonds (FY20-21, reduced from ₹1,840 crore to ₹1,040 crore): Reaffirmed at CARE AAA; Stable
• Long-term instruments – Bonds (FY25-26, ₹42,199 crore): Assigned at CARE AAA; Stable
• Fixed deposit programme: Withdrawn
• Commercial paper (₹10,000 crore): Reaffirmed at CARE A1+
• Specific bond (ISIN INE031A08814, ₹0.00 crore outstanding): Withdrawn

Rationale and Key Rating Drivers:

• The ratings factor in HUDCO's strategic importance to the Government of India (GoI) for implementing policies in social housing and urban infrastructure.
• Strong parentage with GoI as a majority shareholder (75.0% stake as on 31 December 2024).
• Portfolio quality is strong as the majority is backed by central or state government guarantees.
• Adequate asset quality with Net Non-Performing Assets (NNPA) of 0.3% as on 31 December 2024 (vs 0.4% as on 31 March 2024).
• Diversified resource profile, healthy capitalisation (CAR 48.3% as on 31 December 2024), and adequate liquidity.
• Improved profitability with a Return on Average Total Assets (RoTA) of 2.4% (annualized, provisional) in 9M FY2025.
• Assets Under Management (AUM) grew to ₹1,18,931 crore as on 31 December 2024 (~41% YoY growth), partly due to increased infrastructure financing post transition to NBFC-IFC status in August 2024.

Key Weaknesses:

• Concentrated loan book: Top 20 exposures accounted for 81.0% of the total loan book and 451.2% of tangible net worth as on 31 March 2024.
• Increase in Stage 2 exposure by ~₹6,385 crore in 9M FY2025 due to slippage of one exposure remains a key monitorable.

Outlook:

• Stable: CARE Ratings expects HUDCO to remain strategically important to the GoI and maintain healthy profitability, capitalization, and asset quality.