HUDCO loan book climbs to Rs 1.87 lakh crore by September

Housing and Urban Development Corporation Limited (HUDCO) reported standalone loans of Rs 1.87 lakh crore at September 30, 2026, an increase of Rs 25,954.91 crore from March 31, 2026, while borrowings rose to Rs 1.06 lakh crore. The six-month lending expansion coincided with higher rupee and foreign-currency financing flows and Rs 3,500 crore of debt-security repayments.

How much did HUDCO’s loan book grow by September 2026?

HUDCO’s standalone loans grew by Rs 25,954.91 crore in the six months to September 30, 2026, reaching Rs 1.87 lakh crore from Rs 1.61 lakh crore at March 31, 2026. Loans remained the largest standalone financial asset, ahead of derivative financial instruments of Rs 4,629.83 crore and investments of Rs 2,094.72 crore.

HUDCO reported the same Rs 1.87 lakh crore consolidated loan balance at September 30, 2026, compared with Rs 1.61 lakh crore at March 31, 2026. The company said standalone and consolidated figures were effectively the same because the consolidated loss of associate Shristi Urban Infrastructure Development Ltd. was negligible when rounded to crore.

The cash-flow statement recorded an outflow of Rs 25,909.91 crore under changes in loans for the half year ended September 30, 2026, compared with an outflow of Rs 19,758.11 crore in the corresponding half year ended September 30, 2025. The latest period’s loan-related cash use was therefore Rs 6,151.80 crore higher than a year earlier.

HUDCO’s total standalone assets increased to Rs 1.95 lakh crore at September 30, 2026 from Rs 1.67 lakh crore at March 31, 2026. Financial assets totalled Rs 1.94 lakh crore at the September date, while non-financial assets were Rs 867.59 crore, showing that lending assets accounted for most of the balance-sheet increase.

How did HUDCO fund the lending expansion?

HUDCO funded the balance-sheet expansion principally through borrowings, which rose by Rs 24,642.81 crore to Rs 1.06 lakh crore at September 30, 2026 from Rs 80,862.29 crore at March 31, 2026. Debt securities moved in the other direction, declining by Rs 1,160.36 crore to Rs 59,654.36 crore from Rs 60,814.72 crore.

The cash-flow statement shows HUDCO raised Rs 16,506.92 crore of rupee long-term or short-term borrowings and repaid Rs 8,977.70 crore during the half year ended September 30, 2026. It also raised Rs 16,618.18 crore through foreign-currency borrowings and repaid Rs 5.85 crore of those borrowings in the same period.

HUDCO repaid Rs 3,500 crore of debt securities in the half year ended September 30, 2026, compared with Rs 2,451 crore in the corresponding 2025 period. The filing also records Rs 2,344.95 crore of debt securities issued in the latest half year, while net financing cash inflow rose to Rs 22,373.42 crore from Rs 19,133.80 crore a year earlier.

Separately, HUDCO said it raised Rs 1,140 crore through privately placed listed non-convertible debt securities during the half year ended September 30, 2026. The entire amount was raised in the quarter ended June 30, 2026, with no issuance in the quarter ended September 30, 2026, and HUDCO said there was no deviation from the stated use of proceeds.

What happened to HUDCO’s debt and capital ratios?

HUDCO’s debt-equity ratio was 7.16 times at September 30, 2026, compared with 6.98 times at September 30, 2025. HUDCO defines the ratio as total debt, represented by principal outstanding, divided by net worth.

Standalone net worth was Rs 22,959.05 crore at September 30, 2026, compared with Rs 18,037.03 crore a year earlier. Total debts to total assets remained 0.85 times at both September 30, 2026 and September 30, 2025, despite the increase in loans and funding liabilities during the latest six-month period.

The capital-to-risk-weighted-assets ratio, or CRAR, was 32.55% at September 30, 2026, down from 38.03% a year earlier. Common Equity Tier-I, or CET-I, was 30.12%, compared with 37.99% at September 30, 2025; HUDCO reports both measures under applicable Reserve Bank of India guidelines.

HUDCO’s standalone financial liabilities were Rs 1.72 lakh crore at September 30, 2026, compared with Rs 1.44 lakh crore at March 31, 2026. Alongside borrowings and debt securities, other financial liabilities increased to Rs 6,100.71 crore from Rs 2,418.34 crore over the six months.

What do HUDCO’s disclosures say about loan quality and provisions?

HUDCO reported a gross credit-impaired assets ratio of 0.71% at September 30, 2026, compared with 1.21% at September 30, 2025. Its net credit-impaired assets ratio was 0.04%, compared with 0.07% a year earlier, while the provision coverage ratio was 93.76% versus 94.55%.

HUDCO resolved 10 non-performing assets, or NPAs, in project loans between April 1 and September 30, 2026, and said there were no fresh project-loan NPA slippages during the period. It also reported acquiring loan exposure of Rs 5,230.99 crore under the Reserve Bank of India’s transfer-of-loan-exposures directions, with Rs 5,216.59 crore outstanding at September 30, 2026.

Expected credit loss, or ECL, provision on loans stood at Rs 278.95 crore at September 30, 2026, compared with Rs 1,680.17 crore a year earlier. HUDCO reported a net ECL reversal of Rs 4.12 crore for the half year and Rs 44.18 crore for the quarter ended September 30, 2026.

HUDCO also said no loan exposure was transferred during the half year ended September 30, 2026, the same as in the corresponding 2025 half year. This contrasts with the Rs 5,230.99 crore of loan exposure acquired in the latest period, which added to the reported outstanding loan base.

What were HUDCO’s interest flows and liquidity disclosures?

HUDCO recorded Rs 7,511.30 crore of cash inflow from interest on loans and investments in the half year ended September 30, 2026, compared with Rs 6,126.43 crore in the prior-year half. Cash outflow from interest on bonds and borrowings was Rs 4,705.33 crore, compared with Rs 2,936.83 crore a year earlier.

Standalone interest income rose to Rs 7,732.66 crore for the half year ended September 30, 2026 from Rs 6,121.96 crore in the corresponding 2025 period. Finance costs increased to Rs 5,417.31 crore from Rs 4,123.25 crore, while profit after tax rose to Rs 1,762.15 crore from Rs 1,340.06 crore.

HUDCO said it had sufficient liquidity and adequate undrawn bank credit lines to meet operational requirements at September 30, 2026. It also said it had made no default on debt securities, borrowings or other liabilities, and met principal and interest servicing obligations on time during the half year.

The company maintained 100% security cover through a charge on receivables for all secured bonds and debentures outstanding at September 30, 2026. Its certified list of listed debt securities showed Rs 10,684.70 crore of secured securities and Rs 48,693.50 crore of unsecured listed securities, totalling Rs 59,378.20 crore.

Conclusion

HUDCO’s September 2026 statements show that the Rs 25,954.91 crore rise in loans was broadly accompanied by a Rs 24,642.81 crore increase in borrowings, while debt securities declined by Rs 1,160.36 crore. Higher interest income and net financing inflow supported the expansion, alongside lower reported gross and net credit-impaired asset ratios than a year earlier.

The next disclosures will show whether HUDCO continues to mobilise rupee and foreign-currency funding to meet operational requirements as stated by management. Investors can also track use of the Rs 1,140 crore privately placed listed non-convertible debt securities, for which HUDCO reported no deviation from stated objects as of September 30, 2026.