Credit Rating by CARE Ratings Limited

CARE Ratings has assigned and reaffirmed credit ratings for HUDCO's various debt instruments at the highest level of CARE AAA; Stable for long-term instruments and CARE A1+ for short-term instruments. The rating agency highlighted HUDCO's strategic importance to the Government of India (which holds 75% stake), strong asset quality with net NPAs at just 0.05% as of March 2026, and healthy profitability with PAT of ₹4,034 crore in FY26. The bank facilities limit was enhanced from ₹80,000 crore to ₹1,10,000 crore. Some existing bonds were reduced in size while new bonds of ₹66,500 crore and perpetual debt of ₹3,500 crore were assigned ratings. Several NCDs were redeemed and ratings withdrawn. The stable outlook reflects expectations that HUDCO will maintain its healthy metrics and strategic importance.