Current Context: Securitisation volumes originated by Non-Banking Financial Companies (NBFC)s and Housing Finance Companies (HFC)s have almost doubled to around Rs 33,000 crore in the first quarter of the current financial year.
- A credit rating Agency, Icra Ratings, said, the volume of such transactions is expected to cross Rs 1.5 lakh crore in FY23.
- The growth in volumes reflects a 1.9 times increase when compared to Rs 17,200 crore of securitized assets in Q1 FY22 and a 4.4 times increase compared to Rs 7,500 crore in Q1 FY2021.
- "The securitization volumes witnessed in Q1 FY23 were almost double the volumes seen in Q1 FY2022.
- With the growth in credit demand, the disbursements picked up for NBFCs and HFCs in Q4 FY22 and have remained buoyant in Q1 FY23, thereby resulting in higher funding requirements which have been partly met through the securitization of their retail loans.
