Debt Securitisation Up 49,000 Cr in Q1

Mumbai, Jul 7 (PTI) Debt securitisation volumes have inched up to Rs 49,000 crore during April-June 2025 as compared to Rs 45,000 crore recorded in the year-ago period, a report said on Monday.

The total number of originators in these securitisations, wherein a lender hands over future receivables on a single or a bunch of loans to a new entity usually on a discount, was around 90, Crisil Ratings said.

Issuances by non-banking financial companies (NBFCs), led by large players, posted a strong on-year growth of 24 per cent, it said, adding this helped offset the lower origination volume by banks, the domestic rating agency said.

NBFC originations contributed to 92 per cent of the market in Q1FY26, compared to 74 per cent in FY25. The share of top-20 NBFC originators increased to 67 per cent in first quarter this fiscal compared to 56 per cent in the corresponding quarter of last fiscal.

"The top NBFCs have remained steadfast in tapping the securitisation market as a strategy for resource profile diversification. On the other hand, originations by small and mid-sized NBFCs - mostly present in microfinance, unsecured personal loans and business loan segments -- has moderated as both the NBFCs and investors remain cautious in these segments," the agency's director Aparna Kirubakaran said.

In the case of banks, where a few large private sector lenders lead originations, the activity was low on steady improvement in the overall credit-deposit ratio, it said.

From an asset class perspective, vehicle loans (including commercial vehicles and two-wheelers) held steady at 41 per cent, while mortgage-backed loans decreased to around 21 per cent from 25 per cent on year, it said, attributing the decline to lower volumes originated by a large private bank.

Lifting of regulatory curbs on a leading originator led to the share of gold-loan securitisation to surge to 11 per cent in Q1 from virtually negligible levels year-ago, it said.

Share of pass-through certificates (PTCs) rose to a decadal high of 58 per cent, while that of direct assignments (DAs) dropped to 42 per cent, it said.

Banks continue to be the mainstay when it comes to the investors, it said, adding private sector banks investing in a mix of DA and PTCs, with public sector banks are largely focused on DAs.

"Securitisation continues to be an attractive fund raising tool for financiers. Healthy retail credit growth, timely transmission of policy rate cuts and private sector banks' participation will be key to improve and sustain growth momentum of securitisation volumes this fiscal," the agency said.