Securitisation volumes top Rs 68,000 crore in Q3 FY25, says ICRA

ICRA estimates say private sector banks account for Rs 25,000 cr, NBFCs for remaining Rs 43,000 cr

With increased participation by banks, securitisation volumes topped Rs 68,000 crore in October-December FY25 (Q3FY25), according to rating agency ICRA’s estimates.

 

Of the Rs 68,000 crore, ICRA estimates, Rs 25,000 crore is on account of private banks acting as originators and the remaining Rs 43,000 crore has been securitised by non-banking financial companies (NBFCs).

 

Also in the total, roughly Rs 40,000 crore is through pass-through certificates (PTCs).

 

Of the banks, securitisation by HDFC Bank, the largest private lender in the country, is nearly Rs 12,000 crore, via PTCs as against approximately Rs 9,000 crore in Q2FY25.

 

“The market volumes are being driven by a few private banks, which have been using securitisation as a means to improve their credit-to-deposit ratio, given the relatively low pace of deposit growth,” said Abhishek Dafria, senior vice-president, group head, structured finance, ICRA.

 

Sequentially, securitisation volumes in Q3FY25 are nearly flat. However, year-on-year, they have jumped around 80 per cent from Rs 38,000 crore. This is on account of entry by private banks in securitisation this financial year and Q3FY24 was a relatively tepid quarter. 

 

Dafria said: “NBFCs have seen relatively muted growth in disbursement, especially in unsecured asset classes such as microfinance and personal loans, due to industry headwinds resulting in tepid securitisation volume growth for the quarter.”