Mumbai, Jan 4 (NationPress) The projected securitisation volumes in India are set at Rs 68,000 crore for the period of October to December in this fiscal (Q3 FY25), as reported by the credit rating agency ICRA.

This growth is primarily attributed to private banks enhancing their credit-to-deposit ratios, while non-banking financial companies (NBFCs) experience subdued growth due to prevailing industry challenges, as explained by Abhishek Dafria, Senior Vice President and Group Head-Structured Finance Ratings at ICRA Limited.

“ICRA estimates the securitisation volumes for Q3 FY2025 to be Rs 68,000 crore, similar to the figures recorded in the previous quarter,” Dafria mentioned in a post on the social media platform X.

The market is being bolstered this fiscal by several private sector banks utilizing securitisation to enhance their credit-to-deposit ratio amid a relatively slow deposit growth.

“Conversely, the NBFCs have witnessed a more subdued growth in disbursements, particularly in unsecured asset classes such as microfinance and personal loans, due to industry headwinds leading to slow securitisation volume growth for the quarter,” Dafria noted.

Estimates indicate that Rs 25,000 crore is attributed to private banks acting as originators, while the remaining Rs 43,000 crore has been securitised by NBFCs. Securitisation by HDFC Bank, the largest private lender in the nation, stands at approximately Rs 12,000 crore for Q3.

In the second quarter of this fiscal (Q2 FY25), the securitisation volume in India surged by 56 percent year-on-year to around Rs 70,000 crore. This growth was driven by substantial issuances from key players, particularly a major private sector bank and several NBFCs focused on vehicle financing, according to a recent report by CRISIL Ratings.

This performance enabled securitisation volume to exceed Rs 1.15 lakh crore for the first half of the fiscal, achieving a 15 percent year-on-year increase.

Aparna Kirubakaran, Director at CRISIL Ratings, remarked that the robust market volume observed in the initial half was propelled by significant originations from a major private sector bank and a few vehicle financiers.