State-owned Housing and Urban Development Corp. expects to resolve its stressed assets book by FY26, while aiming to recover at least Rs 500 crore of the loans in the current financial year.
The public sector undertaking has multiple assets in the recovery pipeline, with a Rs 1,400-crore loan book under resolution within the National Company Law Tribunal itself.
HUDCO Chairman and Managing Director Sanjay Kulshrestha told NDTV Profit that the stressed asset book should be recovered by FY26.
“By FY26, all the asset recovery should be resolved. But, at the same time, we are completely dependent on the process followed by NCLT. We are currently pushing and pursuing very hard with our consortium partners,” he said.
“During this financial year we are trying that out of the Rs 1,400 crore at least Rs 500 crore of the loans should be resolved by March 2025,” he added.
Kulshrestha added that HUDCO has revised its one-time settlement guidelines. “We are working in a way so that we can resolve it, whether it is through NCLT, DRT, DRET or through lender resolution plans. We have opened up our policies in terms of OTS, and at the same time we are opening up so that we can also bid in case there are no bidders coming,” he said.
“The objective of the company is to bring down its stress assets towards zero by FY26,” the HUDCO chairman added.
Credit Costs Under Pressure
Regarding credit costs, he said that HUDCO's yields are improving but at the same time lending is becoming competitive. “We generally work with a very robust kind of infrastructure and entities. Most of our loans are extended towards state governments and their entities. They are backed by state government guarantee and Budget allocations. This puts a pressure on credit costs.”
Kulshrestha said that HUDCO expects its compound annual growth rate to grow by over 25% in the financial year 2025 owing to strong June quarter results. “In another two–three years, our growth rate will remain between 20–25% and this year we are expecting that it will be slightly higher than 25%,” he said.
While presenting the first quarter results, HUDCO said that its loan book grew to Rs 1.03 lakh crore, up 30% from the preceding financial year.
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