New Delhi, Oct 9 || Driven by vehicle financing, securitisation volume in India rose 56 per cent (year-on-year) to Rs 70,000 crore in the second quarter of this fiscal (FY25), a report showed on Wednesday.
This was propelled by large issuances by some key players, especially a large private sector bank, and a few NBFCs that are primarily into vehicle financing, according to a report by CRISIL Ratings.
The performance helped securitisation volume surpass Rs 1.15 lakh crore for the first half of the fiscal, clocking a 15 per cent on-year growth. As for the investor base, banks continued to dominate the market, accounting for over 70 per cent of the securitisation volume in the first half.
According to Aparna Kirubakaran, Director, CRISIL Ratings, strong market volume observed in the first half was fuelled by large originations by a big private sector bank and a few vehicle financiers.
“Securitisation remains an efficient alternate source of fund raising as banks continue to tackle high credit-deposit ratio,” Kirubakaran mentioned.
Strong retail credit growth of non-banks (accounting for over two-thirds of securitisation originations), particularly those in vehicle financing, also continues to support their large-scale originations in the market.