The commercial vehicle segment witnessed 31 per cent growth and microfinance segment saw 14 per cent growth in the securitisation market
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
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.
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
Securitisation volumes halved to Rs 24,400 crore during the December quarter compared to the year-ago period
The increase in the share of gold loans in securitisation, a trend witnessed in FY20, continued in H1FY21
Lockdown impacted income generation capacity of many borrowers, making investors wary of fresh transactions given the likely deterioration in loan repaying capacity of retail borrowers
In Q1FY20, the share of gold loans was 20 per cent, in Q1FY19 it stood at 7 per cent and was a meagre 2 per cent in Q1FY18. CRISIL said.
According to ICRA, the total volumes are expected to be Rs 1.2-1.4 trillion in FY21, as against Rs 2 trillion in the last fiscal year
Securitisation is needed to widen the pool of resources available to housing finance companies
In the June quarter of FY20, the securitisation volume stood at Rs 50,300 crore, as opposed to Rs 32,300 crore in the same quarter in the preceding financial year
A shift by banks towards PSLCs could lead to stagnation of securitisation market volumes
Issuances of low-rated ones rise, preference shifts to asset and mortgage-backed securities from corporate loans