Housing and Urban Development Corporation Limited (HUDCO) has reported strong growth in loan sanctions and disbursements for the half year ended September 30, 2025, highlighting robust demand and improved financial performance.
Loan Sanctions and Disbursements Surge
Against total loan sanctions of ₹1,27,952 crore in FY25, HUDCO recorded ₹92,709.60 crore in loan sanctions (provisional, subject to audit) during H1 FY26. Loan disbursements for the half year stood at ₹25,838.45 crore, with Q2 disbursements at ₹13,026.19 crore, marking a 43.55% jump over the ₹9,074.26 crore reported in Q2 FY25.
Profitability on the Rise
HUDCO also reported healthy financials:
- Net Interest Income (NII): Up 32% YoY to ₹961 crore in Q2 FY26 (vs. ₹724.7 crore in Q2 FY25).
- Net Profit: Increased 13% YoY to ₹630.2 crore (vs. ₹558 crore last year).
This performance reflects the company’s growing core income and profitability momentum.
Asset Quality Improvement
HUDCO’s asset quality showed notable improvement. Gross NPA declined to 1.34% in June 2025 from 1.67% in March 2025, while Net NPA improved to 0.09% from 0.25%. The gains were aided by the resolution of a long-pending NPA worth ₹277.68 crore, along with technical write-offs of four smaller NPA accounts totaling ₹7.27 crore.
Outlook
The combination of rising disbursements, higher profitability, and improving asset quality underlines HUDCO’s strong operational momentum in FY26. With continued demand for housing and urban development finance, the company remains well-positioned for sustainable growth.
Summary
HUDCO sanctioned ₹92,710 crore loans and disbursed ₹25,838 crore in H1 FY26, with Q2 disbursements rising 44% YoY. Net profit grew 13% to ₹630 crore, while asset quality improved with Gross NPA falling to 1.34%. The strong financial performance highlights HUDCO’s robust growth trajectory and improving credit health.
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