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ICRA Ratings in its latest report has said that securitisation volumes came down to Rs 73,000 crore in the April-September period of this financial year (H1FY23) as compared to more than Rs 83,000 crore recorded in the last six months of last fiscal. It said compared to the year-ago period, when the second wave of the pandemic had impacted financial markets, the volumes were up 70 per cent. At that time, the volume stood at Rs 43,000 crore.

The rating agency said Rs 40,000 crore of assets were securitised in the September quarter, which is 54 per cent higher than the volumes observed in the year-ago period. It is 21 per cent higher than those in the preceding September quarter. The performance is in line with the agency's estimate for overall securitisation to touch Rs 1.50 lakh crore in FY23. It also stated that favourable macroeconomic scenarios, growing fund requirements to support higher disbursements and stable collection efficiencies are some of the key reasons for the momentum, and added that for many originators this route remains a key funding tool to support their growth plans.

According to the report, overall securitisation volumes remain dominated by mortgage-backed loans, which accounted for 46 per cent share, followed by vehicle loan segment at 28 per cent and Microfinance loans at 15 per cent. Securitisation in India is carried out either through Direct Assignment (DA) transactions (bilateral assignment of pool of retail loans from one entity to another) or through the Pass-Through Certificate (PTC) route (instruments issued by bankruptcy remote trusts).