HUDCO Retains BBB Plus Credit Rating from Japan Credit Rating Agency with Stable Outlook
JCRA reaffirms HUDCO’s BBB Plus ratings with a Stable outlook for 2025, citing strong government support, record profits, and robust infrastructure lending.
New Delhi, December 4, 2025: Housing and Urban Development Corporation Limited (HUDCO) announced that Japan Credit Rating Agency Ltd. (JCRA) has reaffirmed its Foreign Currency and Local Currency Long-term Issuer Ratings at BBB Plus, with a Stable outlook. The disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015.
According to JCRA’s press release, HUDCO’s ratings continue to remain aligned with the Republic of India’s Long-term Issuer Ratings, reflecting the company’s strong strategic and financial linkage with the Government of India (GoI).
Key Highlights from JCRA’s Assessment
• Strong Government Integration:
HUDCO, established in 1970 and fully funded initially by the Government of India, continues to maintain deep capital and personnel ties with the government. As of September 2025, GoI holds a 75 percent stake and does not plan further divestment. Board appointments are made with approval from the Ministry of Housing and Urban Affairs.
• Key Role in Urban and Housing Projects:
HUDCO serves as a critical financing arm for national urban development and housing initiatives. It is a designated Nodal Agency for the government’s flagship housing scheme PMAY-U (Pradhan Mantri Awas Yojana – Urban), which continues under PMAY-U 2.0.
In 2024, HUDCO received Navratna status, enhancing its autonomy for domestic and international investments.
• Strong Business Growth:
Driven by rising housing and urban development demand, HUDCO’s loan portfolio has expanded significantly.
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Outstanding loans grew 35 percent year-on-year in FY 2025.
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Consolidated revenue reached Rs 103.1 billion.
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Net profit touched a record Rs 27.1 billion.
Following its classification as an NBFC-IFC (Infrastructure Finance Company) in August 2024, infrastructure lending has accelerated further.
• Healthy Asset Quality & Capital Strength:
Despite a concentrated top-20 borrower exposure of around 78 percent, about 90 percent of HUDCO’s loan book is backed by central and state government guarantees, keeping credit risk low.
Key indicators for FY 2025 include:
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Capital to Risk-Weighted Assets Ratio (CRAR): 46.6 percent, far above the regulatory minimum.
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Gross NPA: 1.67 percent
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Net NPA: 0.25 percent
Stable Rating Outlook
JCRA stated that HUDCO’s ratings remain stable due to its strategic importance, robust capital position, and continued government backing. With urban development projects expanding across the country, HUDCO is expected to maintain growth momentum through FY 2026.
The official press release issued by JCRA has been attached by the company as part of its regulatory filing with BSE and NSE.