Collection recovery in securitisation yet to reach March 2021 levels

With the resumption of economic activity, the collection efficiency for securitisation transactions moved up from 67 per cent in May 2021 to 79 per cent in July. However, it is yet to reach March 2021 levels of 83 per cent, according to India Ratings (Ind-Ra).

The performance of 143 rated securitisation deals showed the recovery has improved sentiments and supported the loan performance in June-July 2021. Overdue loans in softer delinquency buckets started performing with the gradual lifting of Covid-19 pandemic-related restrictions and this trend was prominent in secured asset classes.

Uncollateralised asset classes such as loans and unsecured business loans continue