HUDCO plans to raise funds up to Rs 28,000 crore

The government-owned finance company, Housing and Urban Development Corporation (HUDCO) is planning to raise funds up to Rs 28,000 crore. This fund raising will be done via issue of bonds/debentures (including tax-free bonds, capital gain bonds, GoI fully-serviced bonds, zero coupon bonds, deep discount bonds, subordinated bonds, inflation indexed bonds or bonds/debentures of any nomenclature), as may be permitted by the regulatory authorities from time to time during the financial year 2020-21.

The meeting of the board of directors of the company is scheduled to be held on February 28, 2020 to consider the same.

In the recent quarter Q3FY20, HUDCO’s consolidated net profit fell 37.2 per cent to Rs 206 crore in Q3FY20 vs Rs 328 crore in Q3FY19. Gross Non-Performing Assets (NPAs) stood at Rs 3,698 crore as on December 31, 2019 against Rs 3,287 crore on March 31, 2019.

HUDCO finances social housing and residential real estate through primarily lending to state governments and their agencies, which, in turn, extend the finance or utilise the finance for the ultimate individual beneficiaries.