Parameters HUDCO TNUDF IDFC Bank TIB Nigeria

Established 1970 November 29, 1996 October, 2015 1992

(In A.D.)
Purpose Financing Housing and Urban development projects
in India
Special Incorporated as a fully owned Government
Provision/Act Company under the Companies Act, 1956.
Focus Area Housing and urban development projects
formulated by the State Housing Boards,
Development Authorities, Improvement Trusts, and
Co-operative Housing Societies
Development of urban infrastructure in the state of Tamil Nadu Mandate to build the nation. Providing financial solutions to support key long term infrastructure
projects in Nigeria.
Established as a trust under The Indian Trust Act 1882 by IDFC Bank was established by the demerger of IDFC into five Established Under decree No. 51 of the 1992 constitution of the
conversion of Municipal Urban Development Fund (MUDF), with subsidiaries IDFC Bank, IDFC MF, IDFC Alternatives, IDFC IDF & Federal Republic of Nigeria.
contribution from Government of Tamil Nadu along with all India IDFC Securities.
financial institutions
Urban infrastructure asset creation and provision of urban services. Corporate and private customers in India including the  Municipal services
infrastructure sector that IDFC specialized in from its founding in  Transportation and commercial ventures
1997.  Power / Mass Housing
 Renewable Energy

Ownership HUDCO is a wholly government owned organization. Tamil Nadu Government owns 49.35% of the total shares and ICICI IDFC shareholders received one equity share in IDFC Bank for Majority owned by the private sector but also has the Federal
Structure Bank Limited, Housing Development Finance Corporation every equity share held in IDFC. IDFC Financial Holding Company (a Government, State Governments and Local Governments as well as the
Limited and Infrastructure Leasing and Financial Services Limited 100 per cent subsidiary of IDFC) will hold a 53 per cent equity Nigeria Labor Congress as shareholders.
own 50.65%. share in IDFC Bank, while 47 per cent will be held by shareholders
of IDFC.
Funding Certain Percentage subsidies for smaller projects as TNUDF uses the fund from several International Organizations such IDFC provides various banking related products and services The Bank will make equity and/or quasi-equity (mezzanine financing)
Mechanism well as a variety of loans for larger projects. Also, as JICA, world bank, and KfW, alongside its own capital to fund a catered to infrastructure development as a variety of specific Investments in projects that require risk capital to initiate and develop.
Bonds and Public Deposits act as source of funding. variety of infrastructure projects through loans. loans. It also makes Proprietary investments in relevant projects while also
providing specific loans and subsidies.

Products  Housing  Water Supply  Bharat Banking (Semi-Urban and Rural Customers)  Development Loans

 Urban Infrastructure  Under Ground Sewerage  Personal Banking (Individuals and Families)  Project Finance Advisory and Arranging

 HUDCO NIWAS (Home Loan)  Roads & Bridges  Business Banking (Proprietors and small businesses)  Proprietary Equity

 Public Deposit  Storm Water Drains  Commercial and Wholesale Banking (Corporates)  Fund Management

 Technical & Consultancy Services  Solid Waste Management  Capacity Building and Technical Assistance

 Building Technology  Street lighting TNUDF

 Training & Capacity Building Services.  Other municipal infrastructure facilities including
remunerative projects like bus stand, commercial complex
 Real Estate Development

Organizational Managing Director as Chairman of the Board of TNUDF is managed by a Corporate Trustee viz., Tamil Nadu Urban Similar to any other bank with the exception of the MD being the The bank has a Chairman of the BOD who heads the organization. Then
Structure Directors (BOD). Standalone Organization. BOD Infrastructure Trustee Company Limited (TNUITCL). The Board of current leader of the board as executive vice-chairman. The there is a single Vice Chairman alongside two executive directors
consists of five members including the chairman. Trustees periodically review the lending policies and procedures. current MD is also the former chairman of the now demerged IDFC (Projects, finance) and several non- executive Directors from different
With two of them being appointed by the Tamil Nadu Urban Infrastructure Financial Services Limited Ltd. relevant organizations of Nigeria. The Managing Director/CEO is the
government directly. (TNUIFSL) is the Fund Manager of TNUDF. executive head of the organization with a Company Secretary who also
acts as Legal Counsel.
Profit/Loss Profit after Tax(2014/15) Net income after tax transferred to Capital Fund (2014/15) Loss after Tax (2014/15) Profit before tax (2014/15)
Situation IRs 777.63 Crore IRs 2.78 Crore IRs 2.58 Crore N 973 million (1 USD = 282 Nigerian Naira)
Asset Size IRs 33,113.37 Crore IRs 1800.24 Crore IRs 55,000 Crores N/A
Future Housing For All Various Externally Aided Projects Wholesale Banking $500 million "Nigeria-focused Infrastructure Fund"
Initiatives
 Strength  Strong corporate image in housing and
urban development sectors.
 Market coverage on the demand side as well
as supply side
 EPS of 39.1
 AAA Credit Rating
Weakness  Lending to EWS/LIG at lower rates of
interest
 Loans are long-term, borrowing is short-
term, so mismatch between assets and
liabilities
 Sources of revenue have weak financial
health
Opportunities  Urban housing shortage is about 18.8 million
units of which 95.6 is for EWS/LIG
 India needs to spend over US$1 trillion in
infrastructure development.
 The Real Estate Regulation & Development
Bill.
 India is going to announce its SDG
(Sustainable Development Goals)s
Threats  Fierce competition for HUDCO’s traditional
niche market from banks
 Little flexibility in the restructuring of loans
 NHB, HUDCO’s regulator has become one of
its competitor due to its access to low cost
funds of RBI on account of budgetary
provisions.
 It has borrowers with Poor health, especially
Urban Local Bodies (ULBs)
 
 Ownership structure with the investment of both the state
government as well as three corporations
 100% collection efficiency for the past eleven financial
years
 Support from agencies like the World Bank, JICA, and KfW
 Separate companies handle its various operational aspects
 Investment of ICICI bank in the TNUDF allows it to negate
its effect on the fund as its competitor.
 Its legibility criteria makes it invest only in productive
ventures,
 Social aspect places it in a position of vulnerability to a
more profit centric enterprise
 100% collection means low risks. So low growth
 TNUDF is limited to its location and funding constraints.
 Tamil Nadu is a developing state, so scope for growth is
huge.
 India needs to spend over US$1 trillion in infrastructure
development. The budget for Tamil Nadu will favor TNUDF
 Further international agencies can be attracted for
funding due to high efficiency
 Transformation into a much larger entity can help expand
its operations to other states within India.
 A slow rate of growth means that the Fund cannot cover
for failed endeavors if they occur.
 As TNUDF has a limited scope, it is much more vulnerable
to a competitive environment w.r.t to its core
competencies.
 Organizations like HUDCO which specialize in the same
areas but with a much larger capital base and a
significantly larger product portfolio.
 After demerger of IDFC all assets and liabilities related to
banking operations have been transferred to IDFC Bank.
Includes the accumulated profit of Rs 1,800 crore on the
books of IDFC.
 The net non-performing assets (NPAs) will be between 2
per cent and 3 per cent at the time of the start of the
bank’s operations
 Bank will have a balance sheet of Rs 75,000-80,000 crore
initially.
 The total stressed assets: NPAs plus restructured assets
will be close to 15 per cent.
 New to the traditional banking business
 Of 20 branches 15 lie in tier-VI centers (Population of
around 10,000).
 Bharat-banking is to take banking services to the
community, rather than have people coming to the bank.
 All borrowings that fund long-term infrastructure assets
will be eligible for exemption over time.
 Technology will play an important role and the
dependence on branches will be significantly lower than
for any existing bank.
 Starting from scratch so less stability
 Already established competitors.
 Lack of market penetration
 
 The only infrastructure development bank in Nigeria.
 Working relationships across the globe with competent and
reputable: development, finance, technical and consultancy
institutions.
 Ability to mobilize funds domestically and internationally
 Strong culture of corporate governance and internationally
acceptable principles and best practices
 Diversified and strategic public-private ownership structure
 Lack of competition, so complacency
 Too many directors from different interest groups.
 Nigeria has tremendous scope for infrastructure development
 Housing alone is potentially bigger than oil is.
 Nigeria is about to embark on the largest infrastructure
development in over a decade
 A much more decisive political hierarchy.
 Its niche position in the market will be in danger due to
entrance of similar firms in the market.
 Terrorist Groups such as Boko-Haram which actually want to
take the country back into the stone-age.
 The Capital Base for the Bank is not enough to actually make a
significant impact in Nigeria’s Infrastructure.