HUDCO has disclosed that shares held by the Ministry of Rural Development, Government of India, remain unencumbered as of March 31, 2026. The disclosure was made in compliance with regulatory requirements under SEBI's takeover regulations.

Regulatory Compliance Disclosure

The disclosure was made pursuant to Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Company Secretary and Compliance Officer Vikas Goyal submitted the required documentation to both BSE Limited and National Stock Exchange of India Ltd on April 13, 2026.

Government Confirmation

The Ministry of Rural Development's Rural Housing Division provided official confirmation regarding the encumbrance status of HUDCO shares. Assistant Commissioner (RH) Mannu Jain confirmed that shares held in the name of President of India acting through Ministry of Rural Development are not encumbered as on March 31, 2026.

The confirmation was issued from Kartavya Bhawan 3, New Delhi, with reference number F.No. K.11013/6/2011-RH (RBC)-Part(1) (e-363936). This response addressed HUDCO's earlier letter dated March 20, 2026, requesting the encumbrance status information.

Corporate Structure Details

HUDCO operates as a Navratna Central Public Sector Enterprise under the Government of India. The company maintains its registered office at Core 7A, HUDCO Bhawan, India Habitat Centre, Lodhi Road, New Delhi. As an ISO 9001:2015 certified company, HUDCO continues to fulfill its regulatory obligations including timely disclosures to stock exchanges.

The disclosure ensures transparency regarding the government's shareholding status and compliance with SEBI's substantial acquisition and takeover regulations for the financial year ended March 31, 2026.

hudco has received credit rating affirmation from India Ratings and Research Limited, maintaining its strong IND AAA/Stable rating across all financial instruments. The rating agency's comprehensive review covers multiple debt instruments totaling over ₹2.70 lakh crore, reflecting the corporation's robust financial position and strategic importance in India's housing and urban infrastructure sector.

Rating Actions and Instrument Details

India Ratings has taken multiple rating actions across HUDCO's diverse borrowing portfolio:

The ₹70,000 crore proposed bonds include a sub-limit of ₹7,000 crore for subordinated debt, providing HUDCO with enhanced financial flexibility for its expansion plans.

Strong Financial Performance Drives Rating Affirmation

The rating affirmation reflects HUDCO's continued strong financial performance in 9MFY26, characterized by significant growth across key metrics. The corporation's loan book expanded substantially to ₹1,556.31 billion at 9MFYE26, compared to ₹1,189.31 billion in 9MFYE25 and ₹1,248.28 billion at FYE25. This growth trajectory demonstrates HUDCO's expanding role in financing India's infrastructure development.

HUDCO's disbursement activity reached ₹413.47 billion in 9MFY26, substantially higher than ₹317.60 billion in 9MFY25 and ₹400.38 billion in FY25. The proportion of urban infrastructure financing in the loan book increased to 66.07% at 9MFYE26 from 59.83% in 9MFYE25, indicating the corporation's strategic focus on infrastructure development.

Asset Quality and Capital Adequacy Improvements

HUDCO demonstrated notable improvement in asset quality metrics during the review period. The gross non-performing asset ratio improved to 1.08% in 9MFY26 from 1.88% in 9MFY25, while the net NPA ratio declined to 0.06% from 0.27%. The provision coverage ratio remained robust at 94.70% in 9MFY26, compared to 85.60% in 9MFY25.

The capital adequacy ratio moderated to 38.28% in 9MFY26 from 48.27% in 9MFY25, primarily due to sharp growth in the loan book, while remaining well above regulatory requirements.

Strategic Importance and Government Linkages

India Ratings emphasized HUDCO's continued systemic importance to the Government of India, particularly in financing housing and urban infrastructure projects. The corporation serves as the nodal agency for the 'Housing for All' scheme and actively participates in key government initiatives including Jal Jeevan Mission, Atal Mission for Rejuvenation Urban Transformation, and Pradhan Mantri Awas Yojna.

HUDCO's loan portfolio remains predominantly focused on state government agencies, with their share reaching 98.85% in 9MFY26. The majority of outstanding loans are backed by state government guarantees, with over 80% of the asset book supported by such guarantees, significantly mitigating credit risk.

Profitability and Operational Efficiency

Despite competitive pressures, HUDCO maintained healthy profitability metrics. The net interest margin stood at 2.88% in 9MFY26, while the interest spread remained stable at 1.97%. Net income for 9MFY26 reached ₹20.53 billion, with return on average assets at 1.90%. The corporation's pre-tax profit stabilized at ₹26.0 billion in 9MFY26.

India Ratings expects HUDCO's profitability to remain above 2.5% in the near-to-medium term, supported by continued loan book growth and strategic positioning in the infrastructure financing sector. The rating agency noted that HUDCO's classification as an infrastructure finance company in August 2024 may lead to increased private sector lending opportunities while maintaining focus on public-private-partnership schemes.