Hudco plans re-entry into retail housing loan segment
New Delhi: State-owned Hudco plans to re-enter the retail housing loan segment after a gap of two years.
"We are planning to launch our retail home loan product Hudco Niwas during this year," Hudco Chairman and Managing Director V P Baligar told reporters.
The company will soon approach its board for the approval to enter into retail housing loan market.
The company, currently doing institutional finance, had not given loans to retail customer in the last two years as the NPA in the segment had gone up.
Talking about the financial performance of the Hudco during 2011-12, Baligar said, the company recorded a 14 per cent rise in net profit at Rs 629.18 crore, which is also the highest ever.
The net profit of the company was Rs 550.03 crore in the previous year.
The company registered a growth rate of 35 per cent in disbursement with releases of Rs 6,906 crore as compared to Rs 5,105 crore in 2010-11.
"We have sanctioned a total loan of Rs 20,511 crore, in 2011-12, which is the highest so far," he added.
During the year 2011-12, he said, Hudco sanctioned a total amount of Rs 14,204 crore for urban infrastructure projects. A substantial focus has been laid during the year on core infrastructure projects, which affect the quality of life of citizens, he added.
Of the total sanctions for infrastructure projects, about 56.10 per cent constituted for core infrastructure projects (Rs 7,969 crore) covering water supply, sewerage, drainage, solid waste, roads/transport sector and social infrastructure projects, he added.
With regard to the asset quality, Baligar said, the gross non-performing asset (NPA) of the company stood at 6 per cent while the net NPA was 1.35 per cent at the end of March 2012.
Loans of about Rs 300 crore given to Maheshwar Hydel Power Corporation, Konaseema EPS Oakwell Power Ltd have turned NPA, he said.
The company will be making efforts to bring down its non-performing assets during the financial year by focussing more on recovery.