Securitisation volumes in India reached ₹68,000 crore during October-December FY25 (Q3FY25), marking a significant surge, according to estimates by rating agency ICRA. The rise was fueled by increased participation from private banks and non-banking financial companies (NBFCs).
Private banks contributed ₹25,000 crore to the total volumes, while NBFCs securitised ₹43,000 crore worth of assets during the quarter. Around ₹40,000 crore of the total transactions were executed through pass-through certificates (PTCs), which are a common form of securitisation.
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HDFC Bank, India’s largest private lender, led the way among banks with securitisation volumes of ₹12,000 crore via PTCs. This marked an increase from ₹9,000 crore in the previous quarter (Q2FY25).
Key Drivers of Growth
Abhishek Dafria, Senior Vice-President and Group Head of Structured Finance at ICRA highlighted that private banks are driving securitisation growth to improve their credit-to-deposit ratios. The move comes as deposit growth remains slower than loan disbursements.
While the quarterly growth in securitisation volumes remained flat, the year-on-year growth was striking at 80%, jumping from ₹38,000 crore in Q3FY24 to ₹68,000 crore in Q3FY25. The surge was attributed to the active entry of private banks into the securitisation market this year. In comparison, Q3FY24 was a relatively slow period for the sector.
Muted Growth for NBFCs
In contrast, NBFCs saw limited growth in securitisation volumes due to challenges in lending, particularly in unsecured segments like microfinance and personal loans. “Industry headwinds have impacted disbursements for NBFCs, leading to tepid growth in securitisation volumes for the quarter,” Dafria explained.