Securitisation volumes drop to Rs 7,500 crore in Q1FY21 due to pandemic

Lockdown impacted income generation capacity of many borrowers, making investors wary of fresh transactions given the likely deterioration in loan repaying capacity of retail borrowers

The pandemic and the subsequent lockdown, coupled with the moratorium on repayments announced by the central bank, have significantly impacted securitisation volumes which have falleb to Rs 7,500 crore in Q1FY21 from Rs 50,300 crore in the corresponding quarter a year ago, rating agency Icra said.

According to the rating agency, the lockdown impacted the income generation capacity of several borrowers, making investors wary of investing in fresh securitisation transactions given the possible deterioration in the loan repaying capacity of retail borrowers.

The central bank’s moratorium on repayments from March to August didn’t help the cause of securitisation either. “The RBI’s loan