Mumbai: Securitisation volumes in FY25 increased 24 per cent to hit the highest level of Rs 2.35 lakh crore. A report by rating agency Crisil showed this.
The volumes of securitization is passing on future receivables on a loan to address upfront liquidity needs. This was lower in the fourth quarter at Rs58,000 crore as against Rs 63,000 crore and Rs 70,000 crore recorded in the preceding two quarters. The jump in FY25 volumes was driven by large deals originated by private sector banks and also non-bank finance companies.
The Crisil report said number of issuers increased to 175 in FY25, from 165 entities in the year-ago period. The share of securitisation by banks increased sharply to 26 per cent in FY25 from 5 per cent in FY24.
Among asset classes, vehicle loans including commercial vehicles and two-wheelers accounted for the highest share of securitisation volume at 47 per cent compared to 43 per cent in FY24. The share of mortgage-backed loans increased to 22 per cent compared to 17 per cent in the preceding fiscal. The share of gold-loan securitisation fell from 6 per cent to 2 per cent.
The asset quality stress in the microfinance sector also affected its securitisation volume, whose share declined to 11 per cent from 16 per cent in the last fiscal. Share of both personal loans and business loans remained stable.
Among the two routes of securitisation, pass-through certificates (PTCs) accounted for 54 per cent of volume while remaining 46 per cent were through direct assignments (DAs). Private sector banks continue to invest in both DAs and PTCs, while public sector banks largely opt for DA route, it said.
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