Housing & Urban Development Corporation

“Regarding the credit cost, yes, I think for a year or two, there will be some negative cost and some resolutions will be happening, and there will be some reversals because the provision coverage ratio is around 95%.”

“Other than this project, no disbursement has been started under the PPP mode, but we had sanctioned around INR9,000 crores of the PPP projects.”

“It is in the advanced stage of the documentation, and we are very hopeful that during this quarter, the disbursement will start.”

“At the same time, there is a prerequisite that the entity should be in the investment grade then only we will be funding these kind of projects. There is no target for funding of the PPP project.”

“Under PMAY in totality, PMAY 1 and PMAY 2, we had sanctioned an amount of around INR58,000 crores, and we had released around INR48,000 crores.”

“With this challenge, government has also announced the Urban Challenge Fund, wherein INR1 lakh crores is the subsidy or the grant portion that the government has decided, and another INR1 lakh crores has to be infused by the state governments.”

“If you see, every half yearly, we are sanctioning around INR1 lakh crores.”

“Under PMAY 2, around 20 lakh dwelling units have already been sanctioned, and the government has a target to sanction around 40 lakh units during this financial year.”

“As per the World Bank report, it requires around INR250 lakh crores by 2050. So, we had taken our share till 2030 of the loan book of INR3 lakh crores, on which we are working so that our ratios should not get disturbed.”

“But if you see the total investment which is required is around INR4 lakh crores in another times to come.”

“If you see, without this EBR of 20,000, presently also our spread is 1.96%, which is just around 2%, and our net interest margin is 2.93.”

“There may be a temporary slowdown towards the spread, but I can assure you that it will remain 2% at the end of the financial year, and we will be sustaining across the journey, the spreads of the 2%.”

“For the sake of others' knowledge, I can tell you that INR20,000 crores in our loan book is a loan to the Government of India, which has a spread of only 40 basis points.”

“2028-2029, it will be out from this.”

“There is a one-year reset that we are extending to all our loans. It's a tranche-wise one year.”

“Our blended cost has been very stable irrespective of the turbulent markets, which is now at around 7.07%, which reflects our continued focus on resource optimization despite a rising interest rates regime and elevated corporate bond yields.”

“It is hovering around 8%. We have not raised any money through bonds in the last quarter.”

“But after that, the yields have gone up, so we are not resorting to and we are waiting for the right time to go for bonds. From banks also, we are able to raise money at around 7.25%.”

“If you see the total loan book is INR1.86 lakh crores, and our total borrowing is around INR1.65 lakh crores.”

“we have raised $2 billion, and the effective blended cost after hedging is slightly less than 7%. It is around roughly 6.75%.”

“We raised in the first Q1, we raised around INR2,200 crores through bonds. That was roughly 7%, 7.25% roughly.”

“At the same time, we are also addressing that there should not be any risk perceived while taking the international loans, and that's why we are taking full advantage of RBI swap window.”

“The total amount we are targeting is slightly st more than 3 billion. Other loans are also tied up”

“We are very closely working with the multilateral banks like World Bank, ADB, KfW, AIIB, NDB.”

“On the future side, a lot of new ideas we are working. We are setting up a strategic business group also.”

“It is primarily to identify the assets of the ULBs, to create the projects, then their restructuring, and then their financial closure.”

“You may all be aware that there are a lot of geopolitical issues which are there in the international domain, and because of these uncertainties, there are a lot of uncertainty in the money market, be it the rising of the dollar or the crude, or tightening of the monetary policy, including the raising of the repo rates by the RBI.”

“Going forward also, we don't foresee any losses on foreign currency translation, because now our outstanding ECB loans have maturities of basically five years.”

“I don't think any impact will come, but yes, the compliance will be more from the RBI side. I don't think more than that.”

“And we are discussing with a lot of states, but good states are arranging their own money through SDL because it is the cheapest form of the money for this non-remunerative sector of housing.”

“Further, recent addition in foreign currency exposure, which we have today, is covered under the RBI swap window, which allows for full protection against the currency fluctuations. Only a small portion of FCNR is there, which will be maturing in 2028, which is also adequately hedged, as of now.”

“The disbursement of the loan stood at around more than INR35,000 crores, which is around 37% more than the previous financial year, and our loan sanction has reached to more than INR1 lakh crore during the first half yearly.”

“The loan book has grown by 29% and it has become INR1.86 lakh crores.”

“Revenue from operation has also increased by 26%. The net profit has also increased by 31% during half yearly.”

“If you see during H1 2027, we have a recovery of INR32 crores and resolved around INR359 crores.”

“In 2025-2026, we have recovered around INR403 crores and resolved around INR660 crores.”