Securitisation volumes rise to ₹73,000 crore in Q2 FY26: ICRA report

NBFCs led issuances while bank-originated deals slowed; ICRA and Crisil see steady demand from microfinance and corporate transactions in Q2 FY26

Securitisation volumes in India reached approximately ₹73,000 crore in the second quarter of financial year 2026 (Q2FY26) against ₹70,000 crore in the same period of the previous year, a report by rating agency Icra said on Friday.

 

Manushree Saggar, senior vice president and group head, Structured Finance, said, “Securitisation volumes for the second quarter of 2026 (Q2FY26) reached approximately ₹73,000 crores. This marks an increase from the roughly ₹70,000 crores recorded in the same period of the previous year. In Q2FY25, uptick in market volume was mainly due to significant activity by one large bank. In contrast, the increase observed in Q2FY26 can be attributed to a few corporate transactions.”

 

The rating agency said that routine volumes remained stable at ₹50,000 crores, consistent with ICRA’s projections.

 

Saggar added that although certain large vehicle and mortgage lenders reduced their sell-down activity, the decline was counter-balanced by enhanced participation from microfinance lenders.

 

“This shift highlights a trend in lender behaviour, a more risk-averse approach by lenders towards certain originators wherein lenders are opting to invest through the securitisation route over traditional on-balance sheet funding,” Saggar highlighted.

 

Similarly, another rating agency, CRISIL, highlighted securitisation volume grew 8 per cent to ₹1.24 trillion in the first half of this financial year, compared with ₹1.15 trillion in the corresponding period of last financial year, driven by sustained activity from NBFCs and some large transactions by non-financial sector entities.

 

Volumes by NBFCs, the largest originators, remained strong in the second quarter and accounted for 69 per cent of the market volumes. The share of bank-originated securitisations, however, fell below 3 per cent, compared with nearly 29 per cent in the corresponding quarter of last fiscal, said CRISIL Ratings.

 

Aparna Kirubakaran, director, CRISIL Ratings, said, “NBFC activity remained buoyant, clocking 15 per cent on-year growth. While players into vehicle loans, business loans, gold loans and microfinance raised more funds in the second quarter over the first quarter of this financial year, issuances in mortgages and personal loans were moderate. Bank securitisation, though, was subdued in the first half of this financial year amid steady improvement in credit-deposit ratio.”

 

CRISIL highlighted that among retail asset classes, the share of vehicle loans (including commercial vehicles and two-wheelers) dropped marginally to 42 per cent from 45 per cent in the same period last financial year. Vehicle loans remain the largest asset class in securitisation supported by healthy volumes from large vehicle financiers.

 

Securitisation backed by microfinance loans clocked 38 per cent quarter-on-quarter growth and accounted for 12 per cent share in the first half. The share of personal loans decreased to 6 per cent while that of business loans remained stable at 10 per cent. Gold loan securitisation accounted for 11 per cent of the market volume in the first half and remains dominated by a leading originator, said CRISIL Ratings.

 

Banks continue to dominate the investor segment, said CRISIL.