New Delhi: HUDCO in its 616th board meeting held on November 13, 2019, has approved the 2nd quarter financial results and the growth is remarkably high in all the financial parameters of its MoU targets, like Net profit, total income, net worth, disbursements and balance sheet size, etc. Both the gross NPA and net NPA are the lowest in the financing sector of a government listed company.
Dr M Ravi Kanth is the CMD of HUDCO for the last 5 years and producing outstanding results for its growth and development, focusing on the required discipline and diligence for a government company having divested 10 percent of its equity in 2017 and the remaining 15 percent disinvestment to be done before 2020 as per SEBI Rules. The highlights of the HUDCO Growth are as follows:
NPAs in HUDCO are from the past years between 2003 and 2006, and because of sincere efforts of HUDCO Team for recovery of Rs.800 crores in 2018-19, the Gross NPA is reduced to 4.19%, and the Net NPA is reduced to 0.39%, as on 30.9.2019 in FY 2019-20, the lowest in the sector.
Not even a single rupee was added as NPA, since Ravi Kanth joining as CMD in 2014, with Cautious and Strategic Lending to State Governments, but with Highest Sanctions, Highest Disbursements, Highest Profit, Highest Net Worth to its remarkable credit in the last five years, though the credit off-take in the market is not uniform and low; because of the financial conditions and special circumstances of many state governments on repayment capacity
"AAA" credit rating achieved in 2015 from 3 credit rating agencies, within one year of Dr M Ravi Kanth joining as CMD in 2014, and maintaining the same for Hudco, with due diligence, fiscal prudence and dynamic leadership.
IPO of HUDCO 80 times getting oversubscribed in May 2017 is first of its kind for any Government Company, and the remaining 15% disinvestment is on now.
HUDCOis in golden jubilee year now in the FY 2019-20, having been incorporated in the 4th five-year plan, on 25th April, 1970 for financing to Housing & Urban Infrastructure Sector, as Central Public Sector Enterprise with 8 main objectives and huge mandate to implement all the programmes and policies of the government.
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