What Factors Contributed to India's Securitisation Volume of Rs 73,000 Crore in July-September?
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Synopsis
India's securitisation market has witnessed a remarkable rise, reaching Rs 73,000 crore in Q2 FY26, showcasing a shift in market dynamics. This transformation highlights a more diversified participation from various corporate transactions compared to the previous year’s reliance on a single bank, indicating a robust and evolving financial landscape.
Key Takeaways
- Securitisation volumes reached Rs 73,000 crore in Q2 FY26.
- Growth is attributed to diversified corporate transactions.
- Routine volumes remained stable at Rs 50,000 crore.
- NBFCs accounted for 69% of market volumes.
- Increased activity from micro-finance lenders has been noted.
New Delhi, Oct 10 (NationPress) The securitisation volumes in India have surged to around Rs 73,000 crore during the second quarter of the current fiscal year (Q2 FY26), as revealed by a report on Friday.
This marks a significant rise from approximately Rs 70,000 crore noted during the same period last year (Q2 FY2025), according to the credit rating agency ICRA.
However, the composition of this growth indicates a remarkable transformation in market dynamics.
While last year’s increase was largely driven by substantial activity from a single major bank, the current quarter's growth is attributed to a more diverse base stemming from several large corporate transactions, the report stated.
“Securitisation volumes for Q2 FY2026 have reached about Rs 73,000 crore, reflecting an increase from approximately Rs 70,000 crore in the prior year’s equivalent period (Q2 FY2025),” stated Manushree Saggar, Senior Vice President and Group Head of Structured Finance.
In Q2 FY2025, the market volume uptick was primarily due to significant actions by one large bank. In contrast, the rise seen in Q2 FY2026 is linked to multiple corporate transactions, noted Saggar.
Nonetheless, routine volumes have remained steady at Rs 50,000 crore, aligning with the projections of the rating agency.
Although some large vehicle and mortgage lenders have curtailed their sell-down activities, this reduction has been offset by increased involvement from micro-finance lenders.
“This trend underscores a shift in lender behavior, with a more risk-averse stance towards certain originators, where lenders are now leaning towards the securitisation route rather than traditional on-balance sheet funding,” Saggar explained.
A separate report from Crisil Ratings indicated that “NBFCs, being the largest originators, maintained a robust presence in the second quarter, accounting for 69 percent of market volumes.”
“The activity among NBFCs remained strong, showcasing a 15 percent year-on-year growth. While entities involved in vehicle loans, business loans, gold loans, and microfinance raised more funds in Q2 compared to Q1 of this fiscal, issuances in mortgages and personal loans were moderate,” remarked Aparna Kirubakaran, Director at Crisil Ratings.
Point of View
I recognize the significance of the recent surge in India's securitisation volumes. The shift from dependence on a single bank to a diversified corporate base reflects the resilience and adaptability of our financial markets. This development bodes well for the economy, marking a positive trend that could enhance investor confidence and stimulate growth.
NationPress
11/10/2025
Frequently Asked Questions
What is securitisation?
Securitisation is a financial process where various types of assets, such as loans, are pooled together and sold as securities to investors.
How much did India's securitisation volume rise to?
India's securitisation volume rose to approximately Rs 73,000 crore in the second quarter of FY26.
What factors contributed to the increase in securitisation volumes?
The increase was attributed to a more diversified base of corporate transactions, rather than reliance on a single bank's activity.
Who are the largest originators in the market?
Non-Banking Financial Companies (NBFCs) are the largest originators, accounting for 69 percent of market volumes.
What does the future hold for securitisation in India?
The recent trends suggest a more risk-averse approach by lenders, which could lead to sustained growth in the securitisation market.
