Business

Securitisation Volumes Hit ₹68,000 Crore In Q3 FY25, Driven by Banks And NBFCs

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.

Also Read: India’s Exports To Cross USD 800 Billion Despite Global Economic Challenges, Says Piyush Goyal

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.

Shibra Arshad

Recent Posts

Five Districts In Manipur Face Internet Shutdown Following Unrest

Manipur suspended internet in five districts for five days after protests over arrest of a…

48 mins ago

Shashi Tharoor Criticises Pakistan: “In Pakistan You Get Rewarded For Promoting Terrorism”

Shashi Tharoor condemns Pakistan’s treatment of Dr Shakil Afridi, who helped the US locate Osama…

1 hour ago

How To Read Food Labels & Make Smarter Grocery Choices

Reading food labels helps you make informed, healthier choices by understanding nutrition facts & picking…

1 hour ago

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

14 hours ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

14 hours ago

Chhattisgarh: Seven Maoists Killed In Indravati National Park Operation

Five Maoists were killed in two separate encounters with security forces in Chhattisgarh’s Bijapur district,…

15 hours ago