HUDCO tumbles, post default of Rs. 87.46 crore
On Wednesday, the Government-owned finance company, Housing and Urban Development Corporation (HUDCO), informed the bourses that it reported a repayment default from two borrowing agencies.
The default amount is Rs. 87.46 crores against the principal outstanding of Rs 869.41 crores as on date and have been classified as NPAs with an impact of 1.14 per cent on Gross NPA.
As of September 2019, the company’s overall gross non-performing assets (GNPA) were at Rs. 3,196.23 crores and net non-performing assets (NNPA) were at Rs. 287.36 crores. In terms of percentage, GNPA and NNPA stood at 4.2 per cent and 0.39 per cent, respectively.
In the Q2FY20, HUDCO reported a strong interest income of Rs. 2,035.71 crores as compared to Rs. 1,186.77 crores in the corresponding quarter of the previous year. Notably, profit after tax jumped Rs. 725.84 crores from Rs. 282.14 crores in Q2FY19.
With response to this development, the stock of HUDCO tumbles nearly 9 per cent to touch an intra-day low of Rs. 36.90 apiece.
HUDCO finances social housing and residential real estate through primarily lending to State Governments and their agencies, which, in turn, extend the finance to or utilize the finance for the ultimate individual beneficiaries.