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Business Standard
5 days ago
- Business
- Business Standard
Securitisation volumes up 9% at Rs 49,000 crore in Q1FY26: Crisil
The sale of loans by banks and non-banking financial companies (NBFCs) through securitisation grew 9 per cent on a year-on-year (Y-o-Y) basis to ₹49,000 crore in the first quarter of 2025-26 (Q1FY26), according to rating agency Crisil. NBFCs were dominant players with 24 per cent growth Y-o-Y in offloading loans via securitisation, which involves pooling of loans in a structure and selling it to the prospective buyer, or investor, to generate liquidity. Lenders securitise loans by issuing pass-through certificates (PTCs) and direct assignment (DA). Overall, NBFC originations contributed 92 per cent of the market in Q1FY26 as compared to 74 per cent for the whole of FY25. The higher volumes by NBFCs helped offset the lower origination volume by banks, supporting the overall securitisation market volume, Crisil said in a statement on Monday. The total number of originators in these securitisation transactions was around 90. The securitisation volume was ₹2.4 trillion in FY25 compared to ₹1.9 trillion in FY24. Aparna Kirubakaran, director, Crisil Ratings, said: '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 — moderated as both NBFCs and investors remain cautious in these segments.' Bank securitisation, which is dominated by a few large private sector banks, saw lower originations, coinciding with steady improvement in their overall credit/deposit (C/D) ratio, the rating agency said. In terms of asset classes, the share of vehicle loans (including commercial vehicles and two-wheelers) held steady at 41 per cent in Q1FY26. The share of mortgage-backed loans decreased to around 21 per cent from 25 per cent in Q1FY25. However, this decline is largely attributed to lower volumes originated by a large private bank. The share of gold loan securitisation surged to 11 per cent in Q1FY26, from virtually negligible levels a year ago, supported by lifting of regulatory curbs on a leading originator.
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Business Standard
5 days ago
- Business
- Business Standard
Securitisation volumes rise 9% to Rs 49,000 crore in Q1FY26: CRISIL
The sale of loans by banks and non-banking finance companies (NBFCs) through securitisation rose 9 per cent year-on-year (YoY) to Rs 49,000 crore in the quarter ended June 2025 (Q1FY26), according to credit rating agency CRISIL. NBFCs were the dominant players, recording a 24 per cent YoY rise in loan securitisation. The process involves pooling loans into a structured product and selling it to investors to generate liquidity. Lenders securitise loans through pass-through certificates (PTCs) or direct assignment (DA). NBFC-originated loans accounted for 92 per cent of the total securitisation market in Q1FY26, up from 74 per cent in the full financial year 2024–25 (FY25). Higher volumes from finance companies helped offset lower origination by banks, supporting overall securitisation growth, CRISIL said in a statement on Monday. The number of originators participating in these transactions stood at around 90. Total securitisation volumes were Rs 2.4 trillion in FY25, compared to Rs 1.9 trillion in FY24. Aparna Kirubakaran, Director, CRISIL Ratings, said: '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—moderated as both the NBFCs and investors remain cautious in these segments.' Bank-originated securitisation, dominated by a few large private sector banks, saw lower volumes amid a steady improvement in their credit–deposit ratios, the agency noted. In terms of asset classes, vehicle loans (including commercial vehicles and two-wheelers) maintained their dominant share at 41 per cent in Q1FY26. The share of mortgage-backed loans fell to around 21 per cent, down from 25 per cent in Q1FY25—largely due to lower volumes from a major private bank. Gold-loan securitisation rose sharply to 11 per cent in the quarter ended June 2025, up from negligible levels a year ago, aided by the lifting of regulatory restrictions on a key originator. Meanwhile, securitisation backed by microfinance loans declined to 11 per cent from 14 per cent, as the industry continues to recover from rising delinquencies by focusing on stronger underwriting and scaled-back disbursements, CRISIL added.
Hans India
5 days ago
- Business
- Hans India
Securitisation volume rises to Rs 49,000 crore in Q1 as NBFCs lead charge
New Delhi: Securitisation volume rose nearly 9 per cent to around Rs 49,000 crore in the first quarter (April-June) of 2025-26, compared with Rs 45,000 crore in the same quarter of the previous financial year, according to a Crisil Rating report released on Monday. Issuances by non-banking financial companies (NBFCs), led by large players, posted a strong year-on-year growth of about 24 per cent. This helped offset the lower origination volume by banks, supporting the overall securitisation market volume, the report states. Securitisation in banking is a process where illiquid assets like loans are pooled together, repackaged, and sold as securities to investors. This allows banks to free up capital, transfer risk, and provide investors with access to diversified investments. Overall, NBFCs contributed 92 per cent of the securitisation market in the first quarter of fiscal 2026 as compared to 74 per cent for the whole of fiscal 2025. In fact, the share of the top 20 NBFC originators increased to around 67 per cent in the first quarter this fiscal compared to 56 per cent for the first quarter of last fiscal, according to the report. Crisil Ratings director Aparna Kirubakaran said: "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 have moderated as both, the NBFCs and investors, remain cautious in these segments. Bank securitisation, which is dominated by a few large private sector banks, saw lower originations, coinciding with steady improvement in their overall credit-deposit ratio." In terms of asset classes, the share of vehicle loans (including commercial vehicles and two-wheelers) held steady at 41 per cent in the first quarter of this fiscal. The share of mortgage-backed loans decreased to around 21 per cent from 25 per cent in the first quarter of the previous fiscal. However, this decline is largely attributed to lower volumes originating from a large private bank, the report states. On the other hand, the share of gold-loan securitisation surged to 11 per cent in the first quarter from virtually negligible levels in the corresponding quarter of the previous fiscal, supported by the lifting of regulatory curbs on a leading originator. Securitisation backed by microfinance loans declined to 11 per cent from 14 per cent as the industry is trying to emerge out of rising delinquencies by focusing on strengthening underwriting processes and scaling back disbursements in the near term. Meanwhile, the share of personal loans and business loans decreased to around 9 per cent (vs 11 per cent) and 7 per cent (vs 9 per cent respectively, reflecting a moderation in growth in the first quarter. As a result of differentiated performance across asset classes, the 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. Notably, DA is the preferred route of securitisation for mortgage-backed loans, and to an extent, even microfinance and business loans have seen a reasonable quantum of DA transactions in the past, the report added.
Time of India
5 days ago
- Business
- Time of India
Gold loan sees fastest growth in overall securitisation volume in June quarter
Bundled pool of gold loans saw the fastest growth in the overall securitisation volume in the June quarter. Gold loan securitisation , which did not have much share in the total volume in the corresponding quarter last year, stood at Rs 5,390 crore or 11% of the total securitisation volume of Rs 49,000 crore, according to CRISIL Ratings . The rating agency said that the jump in the share of gold-loan securitisation is supported by lifting of regulatory curbs on a leading originator. Total volume of loan securitisation , which is a source of liquidity for banks and non-bank lenders as they club different loans and sell it to investors, jumped 9% YoY in the first quarter of the fiscal year. Share of vehicle loans (including commercial vehicles and two-wheelers) held steady at 41% in the June quarter, while that of mortgage-backed loans decreased to 21% from 25% in the first quarter of the previous fiscal. The decline is largely attributed to lower volumes originated by a large private bank. Live Events Similarly, securitisation backed by microfinance loans declined to 11% from 14%. The industry is trying to emerge out of rising delinquencies by focusing on strengthening underwriting processes and scaling back disbursements in the near term, CRISIL said. Meanwhile, the share of personal loans and business loans decreased 200 basis points each to around 9% and 7%, respectively. '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,' said Aparna Kirubakaran, Director, Crisil Ratings.
