Housing and Urban Development Corporation Limited has signed a Memorandum of Understanding (MoU) with the Government of Bihar to provide term loans of up to ₹1 lakh crore over a period of 5 years. The agreement, signed on July 3, 2026, at Patna, aims to finance various urban infrastructure projects, including land acquisition and the development of proposed Greenfield Satellite Cities in the state. In a separate development, HUDCO has also announced plans to increase its loan portfolio from ₹1.5 lakh crore to ₹3 lakh crore, and is currently holding roadshows in the USA.

Key Details of the Bihar Partnership

The following table outlines the key parameters of the agreement between HUDCO and the Bihar government:

Loan Terms and Execution

HUDCO shall provide funds on flexible terms and conditions, including a moratorium period with a flexible repayment schedule extending up to 25 years, with the option of prepayment. The loan shall be availed in tranches by the statutory authority specifically designated by the State Government. Repayment will be secured through escrowing the revenue generated from the projects or by ringfencing other sources of revenues, such as identified receivables or the state budget, to ensure timely payments to HUDCO.

Operational Framework

Separate operational agreements with specified scope of work and terms and conditions will be executed based on mutually agreed terms between the parties, keeping in view the requirements of the projects. This MoU is executed to put on record the intent of the parties to undertake the stated activities and shall remain valid for 3 years from the date of execution, subject to annual review.

Portfolio Expansion and Global Outreach

In a significant strategic development, HUDCO has outlined plans to more than double its loan portfolio from ₹1.5 lakh crore to ₹3 lakh crore. As part of its efforts to broaden its funding base and investor outreach, HUDCO is currently holding roadshows in the USA. The following table summarizes HUDCO's portfolio expansion plans:

Housing and Urban Development Corporation Limited reported a 93% year-on-year increase in loan sanctions to ₹65,485 crore for the quarter ended June 30, 2026, compared to ₹33,904 crore in the corresponding period of the previous year. Loan disbursements also rose by 28% year-on-year to ₹16,377 crore during the quarter, up from ₹12,812 crore in the quarter ended June 30, 2025. The data was disclosed to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The performance figures for the quarter are provisional and subject to audit.

The strong growth in sanctions underscores the company's expanded role in financing housing and urban infrastructure projects. For the financial year 2026-27, cumulative loan sanctions stood at ₹1,64,757 crore, while total disbursements amounted to ₹51,194 crore.

Operational Performance

The operational metrics highlight a robust uptake in credit facilities during the first quarter of the fiscal year. The surge in sanctions indicates a healthy pipeline of projects awaiting financial closure, while the increase in disbursements reflects the actual deployment of funds to ongoing ventures.

Financial Metrics (₹ in Crore)

The filing was submitted by Vikas Goyal, Company Secretary & Compliance Officer, on behalf of Housing and Urban Development Corporation Limited. The company continues to operate as a Government of India enterprise and a Navratna Central Public Sector Enterprise (CPSE).