Housing and Urban Development Corporation is confident of reaching a loan book worth around Rs 3 lakh crore by 2030, as the company continues to ride on excellent asset quality and strong track record, Chairman aand Managing Director Sanjay Kulshrestha.
Speaking to NDTV Profit, Kulshrestha laid out an ambitious plans for HUDCO in the next four years or so. He spoke on the back of a strong set of fourth-quarter numbers.
HUDCO's 2030 Target
HUDCO's loan book currently stands at Rs. 1.6 lakh crore. By fiscal 2030, Kulshrestha wants it at Rs. 3 lakh crore - nearly double in under four years.
"We are presently at Rs. 1.6 lakh crores and if you see the track record also, we are continuously achieving our targets," he said. "I am very sure that by 2030 we will be achieving Rs. 3 lakh crores of the loan book."
HUDCO's confidence comes on the back of recent growth, with the company's loan book already doubling in last three years, growing at a of 28-29% annually. This has been fuelled by government schemes including PMAY, Amrut, Jal Jeevan Mission and the Urban Challenge Fund.
The only pain point for HUDCO, however, is the slightly net interest margin dip in its quarterly numbers. Kulshrestha, though, believes the pressure is only temporary.
"Whenever such kind of growth comes to any financial company, there is a slight pressure which is a temporary one in the NIMs," he said, reaffirming guidance of 3% to 3.2%. "From next quarter, you may see such kind of things" stabilise, he added.
On the asset quality front, Kulshrestha set a target of absolute zero NPAs on new sanctions. Of the existing Rs. 1,600 crore NPA pool, he is targeting at least Rs. 500 crore in recoveries this financial year, with Rs. 1,100 crore already under various stages of NCLT proceedings.
The Urban Challenge Fund - a Rs. 4 lakh crore programme with 25% central government subsidy - gives HUDCO a multi-year runway that few infrastructure lenders can match.
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