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Domestic rating agency ICRA in its latest report has said that securitisation volumes, originated largely by non-banking financial companies (NBFCs) and housing finance companies (HFCs), have likely grown by 45 percent to around Rs 25,000 crore in the second quarter of the current fiscal (Q2FY22). In the first quarter of fiscal 2022, the volumes stood at Rs 17,200 crore and were at Rs 15,200 crore in the second quarter of the previous fiscal.

As per to the report, after reaching close to pre-Covid levels in the last quarter of the financial year 2020-21, securitisation volumes had again dipped in the first quarter in this fiscal on account of the second wave of the pandemic. It noted that as the country opened, June saw a resurgence in securitisation, and the momentum continued into Q2. The volumes for the quarter were marginally impacted due to new securitisation guidelines introduced by the Reserve Bank of India on September 24, 2021, as some market participants preferred to put transactions on hold until they were well-versed with the new regulations.

The agency further said the new guidelines will have a positive impact in the long term in terms of widening the securitisation market. Despite the second wave of the pandemic, it said the securitisation volumes in the current fiscal have been higher than the corresponding period of last year, i.e. around Rs 42,200 crore in H1 of the financial year 2021-22 versus Rs 22,700 crore in H1 the financial year 2020-21. It also estimates the annual securitisation volumes to reach about Rs 1.2 lakh crore for the financial year 2021-22, which would imply at around 40 per cent increase from the volumes seen in the financial year 2020-21.