Latest news with #PTCs
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Business Standard
07-07-2025
- 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
07-07-2025
- 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.
Time of India
22-06-2025
- Business
- Time of India
Credit rating firms seek govt intervention over regulatory void on ₹1 L cr unlisted debt
Mumbai: Credit rating companies have sought the intervention of ministries of corporate affairs and finance amid an uncertainty over the future ratings of more ₹1 lakh crore of unlisted securities . The rating of these instruments, like corporate bonds and securitised papers, which comprise an integral part of the financial market for debts, has fallen between the cracks of two regulatory authorities. The ambiguity stems from the fact that the Securities and Exchange Board of India (Sebi), the primary regulator for the credit rating agencies (CRAs), has jurisdiction over only listed securities while unlisted debts raised by corporates, including company fixed deposits, are outside the domain of the Reserve Bank of India (RBI). SEBI had last year told rating firms to get a non-objection certificate from RBI for rating the unlisted papers. Since then, the central bank has allowed CRAs to rate certificates of deposits (CDs) - instruments floated by banks to raise short-term funds. But, there is no clarity on ratings of securitised papers like pass through certificates (PTCs) and unlisted corporate bonds . This is where CRAs want the ministries to step in. Issued against a basket of loans and the interest flows from them, PTCs enable lenders like non-bank finance companies as well as banks to convert relatively illiquid loans into marketable papers and create headroom to lend more while letting investors - like corporate treasuries, financial institutions, and fund houses - hold a diversified pool of assets and sometimes generate a higher return. A predominant portion of the outstanding PTCs are unlisted. Under the circumstances, the CRAs are awaiting a signal from the corporate affairs ministry that they can follow the SEBI guidelines on listed securities while carrying out the rating of unlisted securities. Thus, CRAs want to know whether they can continue to use the same rules of default recognition, application of grading scale, disclosures, and issue of press release for unlisted papers as well. The ministry is yet to respond to the letter from the rating industry body. With New Delhi is yet to give the go-ahead, some of the CRAs, in the course of various meetings, have sensitised issuers of unlisted securities as well as some of the investors that ratings of these instruments may have to be withdrawn in the absence of any clarity from the government or regulators. "More so, with SEBI reminding CRAs a few months ago that the issue needs to be sorted out. This could well be a nudge from SEBI to list more securities and thereby promote transparency. However, many issuers refrain from listing either to avoid the compliance and reporting that come with it or strike bilateral deals with investors and do not feel the urgency to list," said an industry official. Many institutional investors may keep away from unrated securities, including banks who save on capital as unrated loans and investments carry higher risk weights. But while there are takers for unrated instruments, rating helps in investment decision making by capturing the risk and pricing of an instrument. "Some are expecting RBI to clear the air for PTCs which are mostly issued by NBFCs (entities regulated by RBI). If RBI gives a green signal for PTCs, then the issue related to rating of unlisted corporate bonds has to be resolved. Company FDs are a small market," said another official. Earnings from ratings of unlisted papers, said an analyst, is a small slice of CRAs' earnings, but a lack of rating can have some implications for the wholesale debt market. For instance, CRAs' periodic reports on the PTC market are closely tracked by investors. "There are adequate regulations on investments in these unlisted securities but there is not enough regulation about their rating. SEBI understandably wants rating of any instrument to be cleared by some authority. It doesn't want to be blamed for a big loss or default which inevitably raises questions on ratings," said the person. "The market too is evolving. The assets of Alternative investment funds have surged in the last 5 to 6 years and many of these funds put money in unlisted papers," she said. Earlier, CRAs could choose on what it would rate, but those days are long over with the role and rules agencies coming under scrutiny since the IL&FS default in 2018.
Miami Herald
17-06-2025
- Business
- Miami Herald
Solar stocks just got shook up from Washington
The solar industry has been trading jabs all year, but Washington may have delivered the knockout punch. Consequently, solar stocks have taken their investors on a steep slide, with the trend pointing mostly south. Don't miss the move: Subscribe to TheStreet's free daily newsletter For the better part of the year, Washington's response to any clean energy talk has been lukewarm (at best). Unsurprisingly, the ride has been rough, with bankruptcies and brutal sell-offs. Funny how the "Big Beautiful" bill could throw a wrench in what otherwise was a promising no secret that the solar industry, in general, relies on fragile economics. Related: Enphase Energy (ENPH) Downgraded From Hold to Sell Tax credits aren't just niceties; they're essentially the linchpins underpinning the entire solar value chain. Take them out of the equation, and everyone from rooftop solar financiers to utility suppliers loses demand, cost advantages, and bidding power. For residential solar businesses like Enphase (ENPH) and Sunrun (RUN) , the 30% federal Investment Tax Credit, or ITC, makes its systems affordable enough to spark demand. Additionally, it boosts fuel install volumes, software fees for Enphase, and higher leasing cash flows for Sunrun. Strip that away, and its returns shrink dramatically, as do the growth stories. Similarly, on the utility side, First Solar (FSLR) leans on Production Tax Credits, or PTCs, and transferable ITCs to score big utility-scale deals. PTCs boost returns over a ten-year period, while transferable credits help developers unlock upfront cash flow. That combo fattens the margins on its thin-film tech and makes contracts much more attractive. That said, it's worth understanding how these solar bellwethers actually make money because it's not always straightforward. Enphase sells microinverters that sit under rooftop panels, turning sunlight into usable home power. Add batteries and monitoring software, and it's a hardware-plus-subscription play. Sunrun takes a different approach, think of it as a solar utility. It leases panels and batteries to homeowners, collecting monthly payments while handling all the upkeep. Nevertheless, it's a lot more sensitive to interest rates and policy shifts. First Solar, on the flipside, plays at the utility level. It builds massive solar farms with its low-cost, U.S.-made thin-film panels while profiting from one-time sales and ongoing maintenance deals. More On Solar: First Solar Stock Falls. Wall Street Is Split on Fate of Renewables. Macy's is selling a 'well-designed' $399 solar panel for $208 that shoppers say is easy to set up Amazon is selling 'exceptional' $70 outdoor solar lights for just $35, and shoppers say they're 'the best' What ties it all together? Tax credits. ITCs and PTCs help drive demand, improve margins, and unlock greater financing. Solar stocks have nosedived, post-market Monday, June 27, and regular trading Tuesday, June 18, after Senate Republicans proposed changes to President Trump's tax and spending bill. The amendments threaten to phase out solar and wind tax credits fully by 2028. Related: Sunrun (RUN) Stock Climbs, Goldman Upgrades The shift will likely send capital fleeing from solar to sectors with longer government backing. Even First Solar stock, arguably more protected due to its U.S. footprint, has taken a massive beating. Needless to say, the timing couldn't have been any worse for solar stocks. Sunnova's recent Chapter 11 filing landed right when the residential solar space wobbled. With a $9–11 billion debt load and just $13.5 million in cash, the Houston-based installer laid off 700 employees and scrambled to sell assets for some relief. Sunnova wasn't alone, though, with Solar Mosaic also filing for bankruptcy, exposing cracks in the solar model. Then came California's controversial AB 942 bill, gutting solar resale economics. The bill forces homes with solar to switch to the NEM 3.0 net metering plan, slashing credit payouts by 80% whenever ownership changes. Hence, it's a one-two punch for an industry already on its knees. At the time of writing, the Invesco Solar ETF (TAN) is down 10% in regular trading on Tuesday, breaking below the $32 level and extending its six-month slide. Enphase has nosedived 26% so far today, bringing its losses to over 52% in six months. First Solar shed 18%, down more than 24% over the 6-month period. SunRun fared the worst, crashing 42% to $5.63 and flirting with penny stock territory. Moreover, it's now down over 54% in just a month. Related: First Solar (FSLR) Stock Slumps, Goldman Downgrades The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
India Today
30-05-2025
- Automotive
- India Today
Gensol misses May payment for loan on BluSmart cabs: Report
Gensol Engineering, promoted by two of the founders of electric mobility firm BluSmart, has missed a payment of about Rs 4 crore to its pass-through certificate (PTC) holders this month, reported The Economic Times (ET). The last successful repayment was made in April, said people familiar with the matter. Gensol had raised funds by issuing PTCs, which were offered to retail investors on the online platform Grip Invest. PTCs are loans given in exchange for an underlying asset, in this case, vehicles that run on the BluSmart loans were to be repaid using the cash earned by these electric cabs. But after BluSmart shut down its cab services and ongoing talks with Uber and other fleet operators failed to move ahead, repayments became Invest founder Nikhil Aggarwal confirmed the missed payment as quoted in the report. He said Gensol had raised a total of Rs 5.6 crore through the PTCs. So far, 56% of the principal has been repaid, but an amount of Rs 4.04 crore is still loans were secured against 76 electric vehicles. These vehicles are no longer in operation, as BluSmart has stopped its May 29, the Delhi High Court passed a final order, giving possession of these vehicles to the lessor, Vriksh Advisors, a subsidiary of Grip Invest. The court also allowed Vriksh to sell, operate or lease the vehicles. Aggarwal told ET that the vehicles have been inspected and found to be in good said Vriksh Advisors is now working on setting up charging stations and is in talks with fleet operators to re-deploy these vehicles on ride-sharing an industry insider pointed out that even if the vehicles begin running again, the terms of the original PTC agreement may change. He explained that revenues, commissions and pricing would differ on other platforms, and so the repayment plan would also need to be told ET that Vriksh Advisors is trying to find the best buyer or operator for the vehicles, in the hope that proceeds from the lease or sale will help repay the pending loan amounts.'People invested in BluSmart bonds and PTCs because they believed in the cab service, which had a good brand image, and they were also drawn by the high returns,' one investor told to a credit rating report issued by Care Edge Ratings on Tuesday, the bonds were issued in 2023, were due to mature in 2027, and offered a return of 13.6%.ET had earlier reported on April 21 that many BluSmart investors were expecting defaults on the bonds they had purchased through platforms like Yubi and Centricity. BluSmart had issued over Rs 100 crore worth of bonds over the past year. Of this, investors said that more than Rs 80 crore worth of non-convertible debentures (NCDs) are still due for troubles come as Gensol Engineering's promoters, brothers Anmol Singh Jaggi and Puneet Singh Jaggi, are under investigation. They are accused of diverting company funds for personal use. BluSmart has already stopped operations, and Gensol's bank accounts have been frozen following orders from the National Company Law Tribunal (NCLT) in Indian Renewable Energy Development Agency (Ireda), a government-run lender, said last week that it has moved the Debt Recovery Tribunal in Delhi against Gensol Engineering and its arm Gensol EV Lease, over a default of about Rs 729 crore. Ireda had earlier also filed an insolvency case against crisis began after market regulator Sebi launched a probe into Gensol Engineering following a stock manipulation complaint it received in June 2024. Sebi's investigation revealed that the Jaggi brothers had allegedly used loans meant for buying electric vehicles for personal In advertisement
