Mumbai, April 7
Securitisation volume in India rose 24 per cent on-year to around Rs 2.35 lakh crore in financial year 2024-2025, the highest on record, driven by large deals originated by private sector banks and steady fund raising by non-banking financial companies (NBFCs), according to a Crisil report released on Monday.
Securitization enables banks and NBFCs to convert illiquid assets, like loans or receivables, into tradable securities, financial institutions to raise capital and transfer risk to investors.
Crisil Ratings director Aparna Kirubakaran said, “The share of securitisation by banks increased sharply to 26 per cent in fiscal 2025 from around 5 per cent in fiscal 2024 as a few banks used securitization to manage challenges arising from high credit-deposit ratios. That, and steady issuances by large vehicle financiers and mortgage lenders helped offset the decline in volume from microfinance and gold loans.”
Securitisation deals touched a record high despite a relatively tepid fourth quarter, when issuances totalled Rs 58,000 crore, well below the Rs 63,000 crore racked up in the third quarter and Rs 70,000 crore in the second quarter, the report points out.
Issuance diversity continues to improve, with 175 originators in the fiscal year 2025 compared with 165 in the fiscal year 2024. Besides, some large NBFCs securitised newer asset classes, while a few others returned after a hiatus.