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A domestic rating agency Crisil Ratings in its latest report has said that securitisation volumes have jumped 48 per cent to over Rs 75,000 crore for the first half of the fiscal (H1FY23). It can be noted that securitisation activity, wherein a lender transfers its future receivables on a loan to other financier against a cut, had suffered a lot during FY22 because of the devastating second wave of the coronavirus pandemic which made loan recollections difficult.

According to the report, the long track record of stable performance of securitised pools, despite several episodes of adversity, may have eased investor concerns, but some investors continue to be apprehensive. The reticence of some investors to take fresh exposure led to some deals remaining unexecuted, shaving off nearly 10 per cent from the segment's potential growth.

The report further said mortgage-backed securitisation loans remain the largest segment among asset classes, accounting for 40 per cent of market volume, followed by commercial vehicle loans at 30 per cent and microfinance loans at 13 per cent. It said direct Assignment (DA) transactions, including mortgage, gold and microfinance loans, accounted for 62 per cent of the volume, adding that the share of Pass-Through Certificates (PTCs) declined to 38 per cent from 44 per cent a year ago. Private sector banks bought over half of the loan assets, while the state-run banks did a fourth of the volume.