HUDCO aims to grow its asset base to ₹1.5 lakh crore by FY26

He expects the net interest margin (NIM) to remain in the range of 3.0-3.5% and spreads to be between 1.75%-2%.

For the first nine months of the year (9MFY24), NIM was at 3.18% versus 3.16% for the same period last year and 3.22% in the first half of FY24. Spread for 9MFY24 was at 1.62% versus 1.6% last year.

Kulshrestha said the company is working on three aspects: reducing the cost of funds, resolving stress assets, and expanding the diversified loan assets.

He sees a lot of opportunities for growth following the announcements in the housing and infrastructure spaces in Budget 2024. HUDCO, he said, is working closely with the government to fund some of these infra plans.

In her interim Budget speech on February 1, Finance Minister Nirmala Sitharaman promised two crore new houses over the next five years under the PM Gramin Awas Yojana. The FM also said that the government will launch a new housing scheme for India's middle-class population.

The government currently holds a 75% stake in HUDCO.

Discussing the funding plans of the company, Kulshrestha said, "During the last board meeting on February 9, we had enhanced our borrowing limits from ₹18,000 crore to ₹35,000 crore. And now we are planning to take the ECB (external commercial borrowing) route of Japan. Very soon, in the current month only, we are planning to raise ECB funding," he said.

HUDCO shares have gained more than 285% over the past year. It has a market capitalisation of ₹36,000 crore.