Government owned housing finance company (HFC)- Hudco is planning to reenter retail side of the business. It has been two years since the company quit the retail lending.
The company would be launching Hudco Niwas, a retail home loan product this year, and would soon put the proposal with the board for approval. The company is currently entirely into institutional housing finance.
The company registered 14% growth in its bottom line, which stood at Rs.629.18 crore in FY 2011-12, against Rs. 550.03 crore year before. The advances grew by 35% from 5,015 crore to Rs. 6,906 crore during the fiscal. The bank also sanctioned Rs. 20,511 crore of loans, highest ever in its history.
According to Mr. V.P. Baligar, Chairman, MD of Hudco, the lender had sanctioned Rs. 14,204 crore for urban infrastructure projects, under a vision to emphasize on projects which improve quality of life of citizens.
NPA remained an issue, with the gross NPA stood at 6% of the total advances, while the net NPA were 1.35%. The HFC also saw Rs. 300 crore of loans given to Maheshwar Hydel Power Corporation, and Konaseema EPS Oakwell Power Limited turned non-performing.
The company will be making efforts to bring down its nonperforming assets during the financial year by focussing more on recovery, added Mr. Baligar.