Mumbai, Jan 8 (NationPress) Securitisation volumes maintained their consistent growth during the initial nine months (April-December) of the financial year 2025-26, increasing by 5 percent to Rs 1.87 lakh crore, in contrast to Rs 1.78 lakh crore during the same timeframe last year, as per a report by Crisil Ratings released on Thursday.

This increase in securitisation, which involves pooling specific asset types for repackaging into interest-bearing securities, was primarily fueled by robust originations from non-banking financial companies (NBFCs), even as banks showed a decrease in originations, the report noted.

The third quarter recorded volumes of Rs 63,000 crore, aligning closely with issuances from the same quarter of fiscal 2025. While banks had previously contributed significantly to securitisation volumes in the third quarter of the last fiscal year, their involvement this year was minimal. This decline was counterbalanced by heightened activity from NBFCs, the report highlighted.

For the third quarter alone, NBFC-originated securitisation saw a remarkable year-on-year growth of 35 percent, propelled by strong volumes in both gold and vehicle loan pools. Consequently, the originator mix shifted, with NBFCs now accounting for approximately 97 percent of the total retail volumes, compared to 71 percent in the same period of the previous year.

The market also experienced an expansion in the number of originators. In the first nine months of this fiscal year, the total number of originators reached 200, up from 150 during the same period last year, with the majority being NBFCs.

Aparna Kirubakaran, Director at Crisil Ratings, stated: "The substantial increase in originations by NBFCs was driven by significant volumes in the securitisation of gold and vehicle loans. The expansion of the originator base participating in securitisations has further bolstered market activity. Additionally, on the demand side, the market benefitted from priority sector loan (PSL) demand as banks struggled to meet their PSL targets, resolving this by investing in securitisations."

Among retail asset classes, securitisation of gold loans saw a notable rise, accounting for 12 percent of the market volume over the nine-month period, a considerable increase from just 1 percent during the same period last year.

However, the market remained largely dominated by a single leading originator, responsible for the majority of the volumes.

The share of vehicle loans (encompassing commercial vehicles and two-wheelers) saw a slight decline to 43 percent from 48 percent in the corresponding period last fiscal. Nonetheless, NBFC-originated vehicle pools experienced a 14 percent growth over nine months, driven by increased issuances from both established players and new originators engaging in substantial transactions, the report added.