Mumbai, Jan 8 (IANS) Securitisation volumes continued their steady momentum in the first nine months (April-December) of the financial year 2025-26, growing by 5 per cent to Rs 1.87 lakh crore, compared to Rs 1.78 lakh crore in the same period of the previous financial year, according to a Crisil Ratings report released on Thursday.
The growth in securitisation, or the process by which certain types of assets are pooled so that they can be repackaged into interest-bearing securities and the interest and principal payments from the assets passed through to the purchasers of the securities, was largely supported by sustained originations by non-banking financial companies (NBFCs ), despite limited originations by banks, the report said.
Volumes for the third quarter stood at Rs 63,000 crore, broadly in line with issuances seen in the corresponding quarter of fiscal 2025. Notably, while banks had contributed meaningfully to securitisation volumes in the third quarter of the last fiscal, their share was negligible this fiscal. This was offset by increased activity from NBFCs, the report pointed out.
Originations by NBFCs posted a strong on-year growth of 35 per cent for the third quarter alone, driven by strong volumes in both gold and vehicle loan pools. This has resulted in a shift in the originator mix this quarter, with NBFCs accounting for around 97 per cent of the overall retail volumes, as compared to 71 per cent for the corresponding period last year.
The market also witnessed a broadening of the originator base. In the first nine months of this fiscal, the total number of originators was 200 as compared to 150 in the corresponding period last fiscal, mostly NBFCs.
Crisil Ratings Director Aparna Kirubakaran said: “The strong growth in originations by NBFCs was driven by large volumes in securitisations of gold loans and vehicle loans. This, along with an increase in the base of originators carrying out securitisations, has supported market activity. On the demand side, the market also benefited from priority sector loan (PSL) demand as banks faced challenges in meeting their PSL targets, and resolved them by investing in securitisations.”
Among retail asset classes, gold loan securitisation experienced a significant uptick in volumes, rising to 12 per cent of the market volume over the nine-month period, a substantial increase from just 1 per cent during the same period last year.
However, the market was largely dominated by a single leading originator, which drove the majority of the volumes.
The share of vehicle loans (including those of commercial vehicles and two-wheelers) dropped marginally to 43 per cent from 48 per cent in the same period last fiscal. However, NBFC-originated vehicle pools showed a growth of 14 per cent in nine-months, driven by increased issuance from regular players and new originators transacting in large volumes, the report added.
–IANS
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