India's securitisation volume rises to Rs 73,000 crore in July-September

New Delhi, Oct 10 (IANS) Securitisation volumes in India reached approximately Rs 73,000 crore in the second quarter of current fiscal (Q2 FY26), a report showed on Friday.

This reflects a healthy increase from the roughly Rs. 70,000 crores recorded in the corresponding period of the previous year (Q2 FY2025), according to credit rating agency ICRA.

The composition of this growth, however, signifies a notable shift in market dynamics.

The previous year’s uptick was primarily driven by significant activity from a single large bank. In a shift for the current quarter, the increase is attributed to a more diversified base, stemming from a few large corporate transactions, the report mentioned.

“Securitisation volumes for the second quarter of fiscal 2026 (Q2 FY2026) reached approximately Rs. 73,000 crore. This marks an increase from the roughly Rs. 70,000 crore recorded in the same period of the previous year (Q2 FY2025),” said Manushree Saggar, Senior Vice President and Group Head, Structured Finance.

In Q2 FY2025, uptick in market volume was mainly due to significant activity by one large bank. In contrast, the increase observed in Q2 FY2026 can be attributed to a few of corporate transactions, Saggar noted.

However, routine volumes remained stable at Rs. 50,000 crore, consistent with the rating agency’s projections.

Although certain large vehicle and mortgage lenders reduced their sell-down activity, this decline was counterbalanced by enhanced participation from micro-finance lenders.

“This shift highlights a trend in lender behaviour, a more risk-averse approach by lenders towards certain originators wherein lenders are opting to invest through the securitisation route over traditional on-balance sheet funding,” said Saggar.

According to another report by Crisil Ratings, "NBFCs, the largest originators, remained strong in the second quarter and accounted for 69 per cent of the market volumes".

"NBFC activity remained buoyant, clocking 15 per cent on-year growth. While players into vehicle loans, business loans, gold loans and microfinance raised more funds in the second quarter over the first quarter of this fiscal, issuances in mortgages and personal loans were moderate,” said Aparna Kirubakaran, Director, Crisil Ratings.

—IANS

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