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Securitisation Market
Securitisation volumes in FY25 increased 24 per cent to hit the highest level of Rs 2.35 lakh crore, a report said on Monday. The volumes of securitisation, which involves passing on future receivables on a loan to address upfront liquidity needs, were lower in the fourth quarter at Rs 58,000 crore as against Rs 63,000 crore and Rs 70,000 crore recorded in the preceding two quarters, as per the report by rating agency Crisil. The jump in FY25 volumes was driven by large deals originated by private sector banks and also non-bank finance companies, it said. Largest private sector lender HDFC Bank has been very active on issuances in FY25 in order to improve its credit-deposit ratio after merging mortgage major parent HDFC into it. The Crisil report said number of issuers increased to 175 in FY25, from 165 entities in the year-ago period. The share of securitisation by banks increased sharply to 26 per cent in FY25 from 5 per cent in FY24 as a few banks used securitisation to manage
Sebi on Friday extended the deadline to December 31 for submitting public comments on a proposal on the process to appoint key officials of stock exchanges and other market infrastructure institutions and a cooling-off period before they can join a competing institution. Earlier, the deadline was December 12 for submitting comments. In a statement on Friday, the Securities and Exchange Board of India (Sebi) said, "It has been decided to extend the timeline to submit the public comments on the consultation paper till December 31, 2024." The regulator, in its consultation paper issued in November, proposed a process for the appointment of KMPs (key managerial personnel) -- Compliance Officer, Chief Risk Officer, Chief Technology Officer, and Chief Information Security Officer of an MII and cooling-off period for KMPs, including MDs and directors, including public interest directors of an MII joining a competing MII. On the proposed process for appointment, Sebi stated that market ..
The overall securitisation volume growth slowed to 4 per cent in FY24 to Rs 1.88 lakh crore due to the impact of the HDFC twins merger, domestic rating agency Icra said on Thursday. In FY23, the securitisation volume had grown by 33 per cent to Rs 1.80 lakh crore, and mortgage major HDFC was the biggest originator. In a report, the agency said it expects the volume of securitisation - where a lender typically transfers the future receivables on a loan asset against upfront payment - to cross Rs 2 lakh crore in FY25. "The increasing share of co-lending by NBFCs (non-bank finance companies) and HFCs (housing finance companies) would challenge the growth in the securitisation market, though at this juncture we expect an increase in both forms of funding," Icra's group head for structured finance ratings Abhishek Dafria said. He added that if HDFC is excluded, the securitisation volumes grew 25 per cent during the fiscal year. "The increase in volumes was driven by both existing large
Fundraising by small finance banks (SFBs) through securitisation is expected to exceed Rs 10,000 crore in FY2024 against Rs 6,400 crore in the previous year, rating agency ICRA said on Tuesday. The third quarter of FY2024 alone witnessed the quarterly record high securitisation volumes of about Rs 4,200 crore, ICRA said in a release. "The market share of SFBs in the securitisation market would accordingly touch a peak of 6 per cent in FY2024 from levels of sub-2 per cent prior to FY2022," it said. In FY2024, ICRA said six SFBs raised funds through this route against four in FY2023 and only two in FY2022. "The increase in the number of SFBs securitising their assets signals a deepening of the domestic securitisation market, as it provides them an alternative route to raise funds to sustain their growth momentum," it said. Abhishek Dafria, Senior Vice President and Group Head - Structured Finance Ratings at ICRA said the securitisation market has traditionally been dominated by ...
Securitisation volume has declined 17 per cent year-on-year to Rs 38,000 crore in Q3 from Rs 46,000 crore but grown 20 per cent to Rs 1.4 lakh crore during the first nine months of the current fiscal. However, analysts expect the volume recouping and closing the final quarter much higher. Rating agencies Crisil and Icra have, in separate reports, said the growth momentum will continue, given the positive regulatory changes, wider participation, and innovative structures nudging growth. The decline in the third quarter volume is primarily due to the exit of the largest player from the market as HDFC merged with its banking arm on July 1. Securitisation volume has declined to Rs 38,000 crore in Q3 from Rs 46,000 in the year-ago period. But the volume for the first three quarters rose to Rs 1.4 lakh crore, ratings agencies Icra and Crisil said in separate notes on Friday. According to this agency, the fall was primarily due to the Reserve Bank massively increasing the capital ...