New Delhi :A report on Monday stated that securitisation volumes are predicted to increase to Rs 60,000 crore in the July-September quarter and are anticipated to exceed Rs 2.1 lakh crore in the current fiscal year. In the first quarter of the financial year, lenders raised more than Rs 45,000 crore by securitizing loans, and in FY24, they raised Rs 1.9 lakh crore. Usually, lenders combine the anticipated payments on a group of loans they have given out and sell it to other parties at a reduced price in order to fulfill their need for immediate cash flow.
Icra's report states that the projected amount of Rs 60,000 crore for the second quarter is a 36 percent increase from the previous June quarter and a 31 percent rise from the same period last year. The agency did not mention HDFC Bank specifically but indicated that major private sector banks are leading the way in increasing their credit-to-deposit ratio due to slow deposit growth. Icra's group head for structured finance ratings Abhishek Dafria mentioned that the securitisation volumes in the current year could see a boost if private sector banks participate as originators, due to the difficulties in raising deposits and the high credit demand.
He mentioned that in the September quarter, 35 per cent of the volumes came from private sector banks, a significant increase compared to the past when these lenders were not involved as originators. He stated that non-bank finance companies are still raising funds through securitisation to address asset quality mismatches. The agency noted that in the current fiscal year, securitisation is mainly being carried out through the issuance of pass-through certificates (PTCs), with a decrease in the proportion of direct sell-down or direct assignments (DA). Receivables from loans for vehicles remain a prominent factor.
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