Securitisation volumes jumped 41 per cent to Rs 1.78 lakh crore in FY23, driven largely by the retail segment, a report said on Tuesday.
The last quarter of the fiscal alone contributed volumes of over Rs 61,000 crore, domestic rating agency Icra said.
Securitisation involves pooling of loans and selling them to a special purpose entity, so that a lender gets liquidity upfront on the assets it has originated. The agency seemed to be optimistic about its outlook for securitisation.
“The rising interest rates over the past year have not yet materially dampened the credit demand.
“With the Monetary Policy Committee keeping the repo rate unchanged in the recent meeting, we expect the disbursement trends for NBFCs (Non-Banking Financial Companies) and HFCs (Housing Finance Companies) to remain healthy over the near term, which will support the growth in securitisation market across all asset classes,” its group head for structured finance ratings, Abhishek Dafria said.
In FY23, mortgage-backed securitisation loans formed the biggest chunk of the overall volumes at 33 per cent, followed by vehicle loans at 28 per cent, the agency said.
Microfinance loans have made a huge comeback accounting for 20 per cent of the volumes in FY23, it said.
In FY23, the share of pass through certificate route was 40 per cent in retail securitisation, which is largely in line with the historical trends, the agency said, adding, securitisation of personal loans has remained strong throughout the year accounting for 3 per cent of the total volumes.
“Securitisation market in India is gradually becoming more broad-based with asset classes like personal loans, education loans and school finance loans also gaining traction,” Dafria said. PTI AA SHW
