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Securitisation volumes to get back on growth track in FY22: Icra

Credit quality of the rated pass-through certificates (PTCs) should remain 'Stable' during FY22, says rating agency

debt restructuring, Banks, lending, lenders, RBI,
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The rating agency said increase in securitisation volumes for the rest of FY21 an in FY2022 would be supported mainly by growing investor confidence in asset quality due to improving collections

Abhijit Lele Mumbai
The securitisation volumes, especially in retail loans of finance firms and mortgage lenders, will see healthy growth in FY22, after a contraction in FY21 so far. The volume is estimated to rise to Rs 1.2-1.5 trillion in FY22 from Rs 0.6-0.8 trillion in FY21, according to rating agency ICRA.
 
The securitisation involves the conversion of an asset, especially a loan, into marketable securities, for raising cash by selling them to investors. Also, the credit quality of the rated pass-through certificates, instruments with underlying loans, should remain ‘Stable’ in FY22. Though colle­ctions may not have reac­hed pre-Covid levels, the credit