Securitisation volume hits record ₹1.47 trillion in H1 FY27: ICRA

Gold loan securitisation and a recovery in vehicle loan transactions drove a 42 per cent rise in volumes, with ICRA projecting a record Rs 2.6-2.7 trillion for FY27

Securitisation volumes rose 42 per cent year-on-year (Y-o-Y) to a record ₹1.47 trillion in the first half of FY27 (H1FY27), driven by a sharp increase in gold loan securitisation and a recovery in vehicle loan transactions. A pick-up in activity during the July-September quarter pushed half-yearly volumes to an all-time high, according to ICRA estimates.

 

Securitisation volumes stood at ₹1.04 trillion in H1FY26.

 

In Q2FY27, volumes reached ₹86,000 crore, supported by growing traction in gold loans, a revival in vehicle loan securitisation and steady activity in the micro, small and medium enterprises (MSME) and business loan segments.

 

Gold loans continued to lead growth in H1FY27, with securitisation volumes in the segment rising nearly 1.5 times over the year-ago period. Traditional segments, including vehicle, MSME/business and mortgage loans, also recorded steady growth, said Sachin Joglekar, vice-president and co-group head, structured finance ratings, ICRA.

  

Vehicle loans accounted for a third of overall securitisation volumes in H1FY27, compared with 25 per cent in Q1FY27. Some lenders re-entered the market or increased their sell-down volumes during the second quarter, helping the segment regain some of its lost share.

 

After gold and vehicle loans, mortgage loans, small business loans and micro-loans were the other key asset classes, each accounting for 12-15 per cent of overall volumes during the first half.

 

Volumes were evenly split between the pass-through certificate (PTC) and direct assignment (DA) routes, in line with the trend in the previous quarter.

 

Continued reliance on securitisation by non-banking financial companies (NBFCs) to meet their funding requirements also supported growth during the first half.

 

“The strong volumes recorded in the first half lend support to ICRA’s FY27 securitisation volume estimate of at least ₹2.6–2.7 trillion, marking an all-time high,” Joglekar said.