Securitisation market clocks 56% growth in Q1 despite liquidity crisis

With the non-banking financial company (NBFC) sector, especially housing finance companies (HFCs), battling a liquidity crisis, the securitisation market has got a shot in the arm and continues to soar. It has clocked an impressive 56 per cent growth in the first quarter (Q1) of 2019-20 (FY20). 

In the June quarter of FY20, the securitisation volume stood at Rs 50,300 crore, as opposed to Rs 32,300 crore in the same quarter in the preceding financial year. In 2018-19 (FY19), the securitisation volume stood at Rs 1.99 trillion.

According to Vibhor Mittal, group head–structured finance ratings at ICRA, “NBFCs and HFCs