Housing and Urban Development Corporation Ltd aims for its loan book to exceed ₹2 trillion in FY27, driven by strong demand and comprehensive funding strategies, including domestic bonds and overseas borrowing.
Housing and Urban Development Corporation Ltd expects its loan book to cross ₹2 trillion in the current financial year, underpinned by steady demand for housing and urban infrastructure finance, chairman and managing director Sanjay Kulshrestha said.
The state-owned lender is also preparing for a sizeable funding programme. Kulshrestha said Hudco plans to raise ₹75,000 crore this fiscal year from domestic and overseas markets, after already mobilising ₹20,000 crore in the first quarter. The balance will be raised over the remaining three quarters, depending on funding needs.
On the domestic side, the company is looking to raise up to ₹1,000 crore through Capital Gain Bonds, alongside non-convertible debentures and other instruments. The government authorised Hudco to issue 54 EC Capital Gain Bonds last year, and the company raised about ₹120 crore from them in FY26. These bonds allow investors to defer capital gains tax by investing sale proceeds in a qualifying instrument.
Hudco is also leaning more heavily on overseas borrowing. Kulshrestha said the company plans to raise a further $1.3 billion under the Reserve Bank of India’s concessional swap window, which is available until December 31, 2026. The company has already raised $700 million through external commercial borrowings this financial year. Last year, it borrowed about $700 million in Japanese yen.
The lender’s disbursement pipeline also remains strong. Hudco said it disbursed ₹16,377 crore in the April-June quarter, its highest quarterly amount on record and 28% more than the ₹12,812 crore it lent in the same period a year earlier. For the full year, the company expects disbursements of ₹65,000 crore, while its loan book stood at ₹1.62 trillion in FY26. Mint reported that Hudco is also aiming to eliminate bad loans by the end of FY27 as certain insolvency cases near completion, while expanding into rental housing, green energy and broader urban infrastructure finance.
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