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How would you be deploying the IPO proceeds? 

IPO proceeds will go to government because it is a 10% divestment by the Ministry of Housing and Urban Poverty Alleviation who are having a 70% stake in our paid up capital and the rest 20% is rural development. The remaining 10% is urban development. So it is from the Ministry of Housing and Urban Poverty Alleviation side. DIPAM that is the Department of Investment and Public Asset Management is the nodal agency and the proceeds will go to the government.  

We do not need any further equity because our other hedged capital is Rs 2500 crore and our paid up capital is Rs 2002 crore. We have enough equity to take the organisation forward.  

Would you say your current loan book or your housing finance book represents low-cost housing? 

Low-cost housing is an important segment of our housing financing and around 32-33% of the loan book is towards housing which includes economically weaker sections and LIG because we have a motto “Profitability with Social Justice”. Areas the other banks would not touch, Hudco comes forward. About 96% of our lending is towards EWS and LIG and the remaining 70% is towards urban infrastructure.  

Would you have any plans to change your product mix, maybe more towards the housing sector in the near future? 

Yes. It is going more towards housing with governmental flagship programmes like housing for all, Pradhanmantri Awas Yojna extending to LIG, EWS and affordable housing in partnership. The Prime Minister on 31st December 2016, extended the subsidy component to the MIG-1 and MIG-2 category taking the income limits to 12 lakh and 18 lakh per annum.  

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