Surge in Covid-19 cases, localised curbs to hit securitisation: ICRA

ICRA said it expects the full year volumes (FY22) to be around Rs 1 - 1.1 trillion, marginally lower than its earlier estimates of about Rs 1.2 trillion.

The securitisation volumes rose by 52.44 per cent to Rs 71,800 crore nine months ended December 2021 (9M FY22) compared to about Rs 47,100 crore in 9M FY2021. However, the activity is likely to be negatively impacted for FY2022, following the surge in fresh Covid infections and likely threat of localised lockdowns, according to rating agency ICRA.

The securitisation involves the sale of loans and assets to investors through assignment or issuing receipts. Non-banking financial companies (NBFCs) and housing finance companies (HFCs) are active players in selling their loan\assets through securitisation.

ICRA said it expects the full year volumes (FY22)