Securitisation refers to a process that includes the pooling of loans and then selling them to a Special Purpose Entity which then issues securities backed by the loan pool
The commercial vehicle segment witnessed 31 per cent growth and microfinance segment saw 14 per cent growth in the securitisation market
Securitisation volumes for FY23 can reach Rs 1,70 lakh crore, as against Rs 1,26,500 crore in FY22, a domestic rating agency estimated on Wednesday
But they are unlikely to disrupt the securitisation market as such loans constituted only 5% of the total securitisation volume in H1FY23
Retail assets securitisation volumes witnessed a sharp rise of 113% year-on-year to Rs 33,000 crore in first quarter of financial year 2022-23
The Reserve Bank of India defines securitisation as transactions where credit risks in assets are redistributed by repackaging them into tradable securities
Disbursements also picked up, necessitating incremental funding requirements. More than 130 financing entities securitised their assets in the past 12 months
The securitisation volumes in microfinance loans, which saw improvement in the first nine months of FY22, may witness some impact in the fourth quarter due to concerns over the third Covid-19 wave
The cumulative value of deals executed in the first nine months of this fiscal stood at approximately Rs 80,000 crore
ICRA said it expects the full year volumes (FY22) to be around Rs 1 - 1.1 trillion, marginally lower than its earlier estimates of about Rs 1.2 trillion.
Gold loan securitisation volumes stood at around Rs 4,400 crore in the first half of the current fiscal, same as volumes seen in the year-ago period, Icra Ratings said in a report on Wednesday
Securitisation volume more than doubled to Rs 50,000 crore in the first half of the current fiscal year, Crisil Ratings said in a report.
The securitisation process involves the conversion of an assets mostly loans, into marketable securities, which are sold to investors to raise cash
The Reserve Bank on Friday issued Master Direction on loan transfer, requiring banks and other lending institutions to have a comprehensive board-approved policy for such transactions.
India Ratings and Research on Friday said securitisation volumes have picked up post the second wave lull in the first quarter of the current fiscal, helped by the improvement in collections.
The performance of 143 rated securitisation deals showed the recovery has improved sentiments and supported the loan performance in June-July 2021
Icra on Thursday said domestic securitisation volumes are expected to be higher in the second half of the fiscal, which will result in a 40 per cent jump in overall volumes to Rs 1.3 trillion in FY22
Securitisation deals in Q4FY20-21 amounted to Rs 40,000 crore, to become the highest-grossing quarter for the 2020-21 fiscal year
Fears of stricter lockdown amid coronavirus may affect asset quality of retail loans, thereby impacting the fund-raising ability of housing finance and NBFCs through the securitisation route
Rating agency Icra estimates annual for FY21 securitisation at Rs 80,000-90,000 crore