Securitisation Market

Securitisation volume increases 17% in Q1 FY25 to Rs 45,000 crore

Participation of banks as originators offsets impact of HDFC's exit from market

Securitisation volume growth slows to 4% in FY24 on HDFC merger: ICRA

The overall securitisation volume growth slowed to 4 per cent in FY24 to Rs 1.88 lakh crore due to the impact of the HDFC twins merger, domestic rating agency Icra said on Thursday. In FY23, the securitisation volume had grown by 33 per cent to Rs 1.80 lakh crore, and mortgage major HDFC was the biggest originator. In a report, the agency said it expects the volume of securitisation - where a lender typically transfers the future receivables on a loan asset against upfront payment - to cross Rs 2 lakh crore in FY25. "The increasing share of co-lending by NBFCs (non-bank finance companies) and HFCs (housing finance companies) would challenge the growth in the securitisation market, though at this juncture we expect an increase in both forms of funding," Icra's group head for structured finance ratings Abhishek Dafria said. He added that if HDFC is excluded, the securitisation volumes grew 25 per cent during the fiscal year. "The increase in volumes was driven by both existing large

Securitisation of loans by SFBs to cross Rs 10,000 cr in FY2024: ICRA

Fundraising by small finance banks (SFBs) through securitisation is expected to exceed Rs 10,000 crore in FY2024 against Rs 6,400 crore in the previous year, rating agency ICRA said on Tuesday. The third quarter of FY2024 alone witnessed the quarterly record high securitisation volumes of about Rs 4,200 crore, ICRA said in a release. "The market share of SFBs in the securitisation market would accordingly touch a peak of 6 per cent in FY2024 from levels of sub-2 per cent prior to FY2022," it said. In FY2024, ICRA said six SFBs raised funds through this route against four in FY2023 and only two in FY2022. "The increase in the number of SFBs securitising their assets signals a deepening of the domestic securitisation market, as it provides them an alternative route to raise funds to sustain their growth momentum," it said. Abhishek Dafria, Senior Vice President and Group Head - Structured Finance Ratings at ICRA said the securitisation market has traditionally been dominated by ...

Q3 securitisation volume falls 17% to Rs 38,000 cr, but up 20% in 9 months

Securitisation volume has declined 17 per cent year-on-year to Rs 38,000 crore in Q3 from Rs 46,000 crore but grown 20 per cent to Rs 1.4 lakh crore during the first nine months of the current fiscal. However, analysts expect the volume recouping and closing the final quarter much higher. Rating agencies Crisil and Icra have, in separate reports, said the growth momentum will continue, given the positive regulatory changes, wider participation, and innovative structures nudging growth. The decline in the third quarter volume is primarily due to the exit of the largest player from the market as HDFC merged with its banking arm on July 1. Securitisation volume has declined to Rs 38,000 crore in Q3 from Rs 46,000 in the year-ago period. But the volume for the first three quarters rose to Rs 1.4 lakh crore, ratings agencies Icra and Crisil said in separate notes on Friday. According to this agency, the fall was primarily due to the Reserve Bank massively increasing the capital ...

Securitisation volumes see over 40% YoY uptick in 9-month of FY23: Crisil

The commercial vehicle segment witnessed 31 per cent growth and microfinance segment saw 14 per cent growth in the securitisation market

Revised RBI guidelines on securitisation likely to impact short-term loans

But they are unlikely to disrupt the securitisation market as such loans constituted only 5% of the total securitisation volume in H1FY23

Retail assets securitisation volumes rise 113% to Rs 33,000 cr in Q1 FY23

Retail assets securitisation volumes witnessed a sharp rise of 113% year-on-year to Rs 33,000 crore in first quarter of financial year 2022-23

Securitisation volumes jump 70% to Rs 35,000 cr in Q1: CRISIL report

The Reserve Bank of India defines securitisation as transactions where credit risks in assets are redistributed by repackaging them into tradable securities

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.

Securitisation volumes to jump 50% to Rs 1.3 trillion in FY22: Report

Icra on Thursday said domestic securitisation volumes are expected to be higher in the second half of the fiscal, which will result in a 40 per cent jump in overall volumes to Rs 1.3 trillion in FY22

Despite Q4 surge, securitisation volumes fall short of Rs 1 trn in FY21

Securitisation deals in Q4FY20-21 amounted to Rs 40,000 crore, to become the highest-grossing quarter for the 2020-21 fiscal year

Securitisation volumes continue sequential growth in third quarter

Securitisation volumes halved to Rs 24,400 crore during the December quarter compared to the year-ago period

Domestic securitisation activity doubles to Rs 15,200 crore in Q2

The increase in the share of gold loans in securitisation, a trend witnessed in FY20, continued in H1FY21

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

Securitisation volume dips 85% to Rs 6,200 cr in Q1FY21 on slow collections

In Q1FY20, the share of gold loans was 20 per cent, in Q1FY19 it stood at 7 per cent and was a meagre 2 per cent in Q1FY18. CRISIL said.

Covid-19: Securitisation volumes to shrink 30-40% this fiscal, says Icra

According to ICRA, the total volumes are expected to be Rs 1.2-1.4 trillion in FY21, as against Rs 2 trillion in the last fiscal year

RBI panel suggests setting up new entity to boost home loan securitisation

Securitisation is needed to widen the pool of resources available to housing finance companies

Securitisation market clocks 56% growth in Q1 despite liquidity crisis

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

Securitisation volumes down 20% in first half of FY18

A shift by banks towards PSLCs could lead to stagnation of securitisation market volumes

Securitisation market gathers steam

Issuances of low-rated ones rise, preference shifts to asset and mortgage-backed securities from corporate loans