Securitisation volumes up 9% at ₹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.

 

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, Crisil added.