Direct sale of loans by NBFCs and HFCs takes a knock in H1, says Icra

Securitisation under pass-through certificate (PTC) transactions was to the tune of Rs 92,000 crore in the past one year

The securitisation of loans through direct assignment route by liquidity-strapped finance and housing finance companies (HFCs) fell 33 per cent on a sequential basis in the six months ended September 2019 to Rs 58,400 crore, from Rs 87,450 crore in October 2018-March 2019.

Rating agency ICRA said the direct assignment volumes have witnessed a decline in the first half (H1) of 2019-20 (FY20), mainly due to the weakened credit profile of a few originators having impacted their ability to securitise further. These players were traditionally large and active participants in the market.

After the Infrastructure Leasing & Financial Services (IL&FS) debacle, which